22 Feb 2022
Are Your Clients Hoarders?!
Anti-hoarding provisions limit a borrower’s ability to stockpile cash under its revolving line of credit to shore up liquidity in the event of an economic downturn in the oil and gas market. While the use of these provisions has declined in recent years, the COVID-19 pandemic and the ensuing slowdown in the oil and gas markets caused lenders to seek the inclusion of anti-hoarding provisions once again in 2020. Read this practice note that provides an overview of the purpose and key characteristics of anti-hoarding provisions and discusses recent market trends in certain publicly filed deals from 2021.
Related Content
- Reserve-Based Loans
Review this practice note discussing the key characteristics of reserve-based loans, which have been common in the oil and gas industry in recent years, especially among non-investment grade exploration and production companies.
- Asset-Based Lending Resource Kit
Check out this resource kit that provides an overview of asset-based lending, which may be used by a wide variety of businesses, both in terms of size and credit quality, and may also be used for different purposes. This resource kit includes guidance on the core components of an asset-based loan transaction, including detailed practice notes, templates, and checklists.
- Financing the Upstream Oil and Gas Transaction
Read this practice note discussing the financing of upstream oil and gas transactions. Upstream oil and gas companies have a variety of financing sources. This note discusses the customary features of typical debt financings, equity financings, and certain joint venture structures employed by non-investment grade, privately held, upstream oil and gas companies in the United States.
Practical Guidance Updates
Featuring the latest updates from your Practical Guidance account.
- Market Standards—Finance
- LIBOR Transition Video
Watch this video highlighting the transition of LIBOR clauses in credit agreements and the market implications. - Market Trends 2021: Refinancing Amendment Provisions
- Market Trends 2021: Incremental Facilities
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