Legal
Event of default
Also known as: EOD
status: draft
A specified breach or event that gives capital providers enhanced remedies, often including acceleration, replacement rights, or a switch to a post-default waterfall.
What to watch
Distinguish defaults from early amortization events and trigger breaches. The remedy package is what changes your economics.
Referenced in 45 topics
Account control agreements documentation Advanced waterfall mechanics mechanics Amortization and repayment mechanics Cash operations and waterfall execution operations-lifecycle Covenant compliance monitoring operations-lifecycle Covenant cures and waivers mechanics Covenants mechanics Credit agreement and indenture documentation Deal autopsy: why deals fail playbooks Deal structures asset-classes Document coordination documentation Documentation negotiation playbooks Financial covenants mechanics Finding the right capital partner playbooks Forward flow agreements structures Hedging and interest rate mechanics mechanics Infrastructure debt asset-classes Managing multiple facilities playbooks Navigating the deal process playbooks Negative and affirmative covenants mechanics Participation structures structures Pricing negotiation playbooks Private placement / bespoke structures structures Reporting requirements operations-lifecycle Reps, warranties, and enforcement documentation Revenue-based financing asset-classes Revolving, prefunding, and reinvestment mechanics Sample term sheet (annotated) appendix Sample waterfall appendix Security and pledge agreements documentation Selecting and working with trustees playbooks Servicing agreement documentation Structural tests (OC/IC) mechanics Subscription finance / capital call lines structures Term sheet anatomy documentation The waterfall mechanics Top deal process mistakes playbooks Top originator mistakes playbooks Transaction agreements documentation Triggers, tests, and performance events mechanics Trustees counterparties Upsizing and facility expansion lifecycle-events Waiver, amendment, or acceleration playbooks Warehouse facilities structures Workouts, restructuring, and enforcement lifecycle-events