Which external document outlines all loan mechanics and covenants?

The Credit Agreement is the comprehensive external document that outlines all loan mechanics and covenants associated with a debt facility. This document serves as the primary agreement between the borrower and the lenders, detailing the terms and conditions under which the loan is provided.

In the Credit Agreement, you will typically find information about the amount of the loan, interest rates, repayment schedules, and specific covenants that the borrower must adhere to, such as financial ratios or operational restrictions. These covenants are vital for protecting the interests of the lenders and ensuring that the borrower maintains a certain level of financial health while the loan is outstanding.

In contrast, other documents like the Security Agreement primarily focus on the collateral securing the loan rather than the terms of the loan itself. The Private Supplement and Engagement Letter also contain relevant information but do not usually encompass all loan mechanics and covenants. Instead, engagement letters typically pertain to the arrangement of the financing process and may outline the responsibilities and fees of the parties involved, without delving into the specific covenants or loan mechanics.