Equity Cure Right Clauses
(Credit Agreement)

Summary

These Equity Cure Right clauses for a credit agreement are used in a transaction where the parent company of the borrower (or private equity sponsor in a sponsor-led transaction) contributes cash to the borrower to help it meet its financial covenants. These clauses include practical guidance and drafting notes. For a full listing of key content covering events of default, see Events of Default Resource Kit. For examples of the latest versions of these clauses, see Market Trends 2023/24: Equity Cure Rights and Events of Default Enforcement, Remedies, and Cures (Credit Agreement). For a full listing of key content covering a credit agreement, see Credit Agreement Resource Kit.