covenant-summary git:20261026.756fe80A

Immutable. This exact content never changes and is served at /api/v1/blob/6a2e2087c2305885.

---
name: covenant-summary
description: Summarises each financial covenant in a facility agreement, with what it tests, its level and the latest figure from the results or compliance certificate, every figure cited. Use when the User asks for a covenant summary, whether the covenants are met, or a check of a borrower's financial covenants.
license: Apache-2.0
metadata:
  author: IncarnaMind
---

# Covenant summary

Write a covenant summary from the facility agreement and the results that test it, drawn only from what the Passages say.

## Which Documents

- The facility, loan or note purchase agreement sets the covenants; the results, the compliance certificate or the borrower's certificate gives the figures and the test.
- If the Question names an agreement, use it. If the Search scope holds several, summarise each agreement's covenants in turn, or the one the Passages point to, saying which you chose.
- A CIM, a term sheet or a memo is not the agreement: use it for context only, never as the covenant's terms.

## Gather the material first

Search the Documents before writing anything (search_documents searches only the Documents in the Question's Search scope):

- Search the agreement for its covenant clause in several ways: "financial covenant", "covenants", "Leverage", "Interest cover", "Net Debt", "EBITDA", the defined terms it uses, and "compliance certificate".
- Search the results for each covenant's latest figure: the ratio or amount, the period, and the sentence or certificate that says whether the test was met.
- Make several searches at once where you can, and search again with the agreement's own words after the first results.
- If you were given Passages instead of a search Tool, work from those.

## Write the summary

Where it goes: if the User asked for a page, a note or a section, and you have the note's Tools (create_mind, add_to_mind), write the summary there (create_mind for a new page, add_to_mind for the note they are in) and keep your reply to a sentence or two. Otherwise write it in your reply. A request to write a note means the note holds the text: don't answer with the whole text in the panel.

Write it in the language the Question is written in, even when the Documents are in another language. Translate the headings below into that language too.

Start with a heading naming the borrower and the agreement, then one sentence on the facilities it covers and the period tested. Then, for each financial covenant:

1. **Its name and test**: the covenant as the agreement names it, and what it measures in the agreement's defined terms (for example, Leverage as Consolidated Net Debt to EBITDA).
2. **Its level**: the ratio or amount the agreement requires, with the direction of the test (no more than, or not less than) and the period it is tested over. Give it as written.
3. **The latest figure**: the figure from the latest results or compliance certificate, with its period and units, and whether the latest test was met.
4. **The headroom**: the room the latest figure leaves, only where the Documents' figures give it; say "calculated from" and cite both figures when you calculate it.

Keep the level and the latest figure apart: the level is what the agreement requires, never the borrower's latest figure. If the results don't give a figure for one covenant, say plainly that it isn't in the Documents, and never use another period's or definition's figure for it. Where several agreements or facilities are in scope, give each its own section.

## Citations and honesty

- Cite every figure, and every statement you take from a Document, the way your instructions for citing say: markers that point to the Passages you found. Don't write a list of sources or a bibliography.
- Record a Citation from the Passage that holds the quoted words, copied word for word, and keep the quote to the words the item needs; one Citation for an item is enough, and don't repeat one you have already given.
- If the check does not find a Citation, don't keep it: search again for the Passage that holds the words, record that Passage, and drop the one that failed.
- Never cite a Passage for something it doesn't say, and never invent a level, a figure, a period or a defined term.
- Give amounts, ratios and periods as the Documents write them; don't convert a currency or annualise a figure unless the Documents do.
- If the Documents don't support what the Question assumes, say so plainly.