National Federation of Municipal Analysts 2025 Annual Conference

Mike will moderate the panel on the topic of “Best Practices & Pitfalls Negotiating Financial Covenants.” The panel focuses on the importance of financial covenants in providing bondholder protections, highlighting that some covenants are more effective than others. It addresses common pitfalls in negotiating financial covenants and offers best practices to avoid them. Specific examples include the negotiation of debt service coverage ratios and days cash on hand covenants, with considerations such as whether the numerator is based on net change in assets or operating income, and whether cash on hand includes reserves. An expert panel will discuss best practices and market standards, emphasizing what investors could and should negotiate for.