Glossary / finance terms
Equity cure
The sponsor's right to remedy a failed financial test by injecting equity. Facilities limit how often it can be used and what it counts towards.
In the filed deals
IREN's Hardware 3 documents allow unlimited cures until the T4 acceptance date, then six in total and not on more than two consecutive test dates.
For in-house counsel
Equity cure in the filed documents
Where the term turns up in filed contracts and what is market, for the lender’s or the borrower’s side. Previews are open; the full text is free with InfraCompute Weekly.
- Clause library: Equity cure and contract cureSponsors can fix a covenant breach by injecting equity. The filed deals allow unlimited cures in the early months and then cap…
- What’s market: Equity cure limits in GPU loansHow many times can a sponsor cure a covenant breach with equity?
- Clause library: Minimum DSCR covenantThe financial covenant sits below the cash trap. Missing it is an event of default, usually subject to an equity cure. In the…
- The legal desk for in-house counselContract library, issues lists, checklists and English law notes.
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Explanatory definition, not a statement that a particular transaction contains this term or a substitute for its contractual definition.
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