Market Trends 2021: Anti-hoarding Provisions

Summary

This practice note provides an overview of the purpose and key characteristics of anti-hoarding provisions common to debt financing agreements in the oil and gas (O&G) industry and discusses recent market trends in certain publicly filed deals from 2021. 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 O&G market.