Trigger Setup & Management
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Our trigger setup and management teams assist our clients navigating the complex world of loan covenants and triggers. We build custom approaches to each client’s specific needs and expectations to ensure key loan covenants are not missed.
Examples of triggers analyzed:
- Tenant does not renew
- Franchisor PIP Requirement
- Tenant Goes Dark
- Tenant Termination
- Co-Tenancy Clause / Ability to Terminate
- Gross Sales Revenue below Threshold
- Net Worth below Threshold (Tenant)
- Tenant Credit Rating
- Loan Requirement Not Met
- DSCR/Debt Yield/LTV Triggers
- Borrower/Guarantor Net Worth/Liquidity/Bankruptcy
- Credit Ratings
- Environmental
- Franchise Agreements
- Insurance Requirements
- Inspection Ratings
- Post Closing
- Rate Caps
- SCRA Benefit
- Seasonality
- Future Advances
SPA analysts conduct trigger monitoring taking into consideration the consequences and cures by reviewing servicing systems, credit rating agency websites, contact with borrowers, tenants, special servicers and market contact, and review of the following documents:
- Loan Agreement
- Cash Management Agreement
- Deed of Trust
- Original Notes
- Reserve Agreements
- Lease Agreements
- Rent Rolls
- Franchise Agreements
- PIP Reports
- Asset Summary Report
- Estoppel Certificates
How can our real estate professionals help? Contact SPA for an initial consultation.
