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Minimum DSCR covenant in GPU loans
What minimum DSCR do GPU lenders set as an event of default? Two approaches appear in the filings. Facilities that test historical contracted cash flow set a thin 1.05x covenant. Facilities that test the borrower group's net operating income over three months set it higher.
1.05x on contract cash flow, or 1.15x to 1.40x on operating income5 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 loansWhen a GPU loan cash trap turns into prepayment
Six consecutive months, or four quarterly tests
GPU loansWhat goes into the DSCR in GPU loans
Contract cash flow less listed costs, or three months of operating income
GPU loansAdvance rate in GPU loans
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.
