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When a GPU loan cash trap turns into prepayment
How long can a cash trap run before trapped cash must prepay the loan? The filed GPU facilities escalate a cash trap that will not clear. After a set period the trapped cash goes to prepay the loans instead of waiting in an account.
Six consecutive months, or four quarterly tests3 filed deals · as at 27 October 2026
As at 27 October 2026. This page keeps its address when it is updated, so it can be cited. If a newer filing changes a term, tell us.
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Cash trap level in GPU loans
1.10x in three filed facilities, 1.15x in one
GPU loansMinimum DSCR covenant in GPU loans
1.05x on contract cash flow, or 1.15x to 1.40x on operating income
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Contract cash flow less listed costs, or three months of operating income
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90% to 95% of cost, lower before revenue starts
Method
Levels are taken from the filed documents quoted above and summarised in the clause library. Where only a few deals are public, the range is narrow by necessity; a private deal can sit outside it. General information drawn from public filings. It is not legal advice on any transaction, and using this page does not create a lawyer-client relationship. Views are personal.
