// definition
Covenant
A borrower’s contractual undertaking
Short definition
A financing clause requiring a borrower to meet an obligation, restriction or financial threshold, such as minimum liquidity. Contractual definitions, testing dates, exceptions and remedy periods determine its application and the consequences of a breach. Calculating available headroom requires the covenant’s detailed terms.
risk atlas
Knowledge map
Intuition
Compliance with a financial clause depends on the contract’s definitions and thresholds.
Related analyses
- Nebius: a 364-day Citi facility for GPU expansionThe October summary discloses a minimum-liquidity covenant without its numerical threshold.
Primary sources
- Nebius / SEC, October 22, 2026 Form 6-KMinimum liquidity, other undertakings and events of default subject to exceptions, grace periods and thresholds.