Hire an AI loan leverage covenant reviewer

Everything it can hand back

Your task sets the actual outputs. The specialist picks the methods that cover them.

• A covenant EBITDA bridge. Each add-back shows its support and whether it fits under the cap.
• Net debt on the test date, the net debt ratio and signed headroom against the limit
• A cure scenario, only if headroom is negative and the cure right is still open. Net debt stays unchanged.
• A cash sweep scenario or update, only if a sweep is proposed or paid
• Reviewer questions for anything missing, plus MISSING lines, checks that could not run and a record for next time

How it does the job well

• Reconcile to source documents, such as bank statements, ledgers and invoices, before reporting.
• Show the calculation, inputs and period for every figure.
• Label actuals, estimates and forecasts clearly.
• Send tax, legal and regulatory questions to a qualified professional.

Mistakes it avoids

• Mixing cash and accrual figures, or different periods, in one comparison.
• Rounding or formula errors that do not tie back to totals.
• Giving personal investment advice.

What a good result looks like

An example, not your task: A new covenant compliance certificate arrives and you want to rebuild the net debt ratio from the agreement's own definitions.

• Changed since last review. Each new certificate, add-back, cash balance, cure record or prepayment, with its source and date.
• Covenant EBITDA bridge. Earnings plus uncapped items plus allowed add-backs up to the cap. Refused add-backs are listed with the reason.
• Net debt and headroom. Net debt on the test date, the net debt ratio and signed headroom against the limit.
• Cure scenario (only if headroom is negative). The extra EBITDA a cure would add, with net debt unchanged. Skipped with a reason if no cure right remains.
• Cash sweep (only if proposed or paid). A proposed sweep is a scenario only. A paid sweep updates dated debt and cash and reruns the ratio.
• Reviewer questions. One question for each missing clause, add-back support or payment proof.

How the work is checked

• No add-back is admitted without evidence, and the cap is applied as the agreement words it.
• Debt and cash come from the same date, and headroom keeps its sign.
• No cure is treated as received, timely or legally effective without proof, and cure cash is counted once.
• A proposed sweep never changes the real debt baseline. Scenario cash is never proof that the covenant was met.
• States which checks passed, failed or could not run, and names missing inputs.

These checks have not been run against a model yet. Your AI uses them to check its own work.

Capabilities

• Compares with the last review. Reads the saved record if it belongs to this loan, or sets a first baseline. Compares the covenant version, the test date and the evidence with the record. If nothing changed and no review is due, it says so and stops.
• Tests the add-backs. Allows only add-backs the agreement lists and the borrower supports. It applies the cap to the pre-add-back figure, as written. If the agreement caps the post-add-back figure instead, it stops this path and asks.
• Works out net debt and headroom. Uses debt and eligible cash from the same date, applies the cap on cash that may be netted, and divides by covenant EBITDA. Headroom is shown with its sign, so a breach is not hidden.
• Tests a cure only when it fits. Runs only if headroom is negative and the cure right is still open. The cure adds to EBITDA only, net debt is left as it was, and the cash is never counted twice. Otherwise it skips with a reason.
• Handles a cash sweep. A proposed sweep is a scenario and the real debt does not change. A paid sweep updates only the dated debt and cash, and the ratio is run again. Payment is the smallest of the sweep due, the cash above the floor and the eligible debt.
• Reconciles and saves the record. Ties the ratio and headroom to the clauses and statements, lists each change, and writes a short record for next time. It keeps the old record.

How the role works

1. Checks your task, context and available tools.
2. Picks the methods needed and prepares a work plan.
3. Carries out supported tasks, with each method's limits and review gates.
4. Checks the real deliverables and corrects supported faults.
5. Hands back files, evidence and unresolved gaps.

Your specialist's working setup

Download the base specialist without a task form or account. README.md and SETUP.md explain how to use the folder. SOUL.md defines its scope. INTAKE.md asks missing questions inside your AI. PLAYBOOK.md, SKILLS.md, BEST_PRACTICES.md, CHECKS.md and HANDOFF.md guide the work and its checked deliverables.

Complete associated skills, supporting files and licences are included. Choose only the methods needed for the actual task. Keep context, working files and accepted feedback in your AI project.

Use this specialist through MCP or the API

Call prepare_specialist with role_id leverage-covenant-change-assistant only. No task is required to load it. Your AI asks what job you need done, what you want back and which relevant context it can use.

For task-led hiring, call find_specialist, explain the suggested specialists and let the user accept or change the team.

Complete ZIP: Download base specialist. API: GET /api/v1/specialists/leverage-covenant-change-assistant/pack. The host AI supplies its own model, tools and execution; a pack does not connect accounts or run a task.

Inputs and helpful context

The specialist starts from the task brief. Only active methods require their inputs.

For the primary method, when used

• The agreement's definitions, quoted with clause numbers: covenant EBITDA, add-backs and their cap, net debt, cash that may be netted and its cap, the net debt limit for each test date, and cure rights
• The compliance certificate or the earnings figures for the test period, and the add-backs claimed with their support (from the borrower's certificate and back-up)
• Debt and eligible cash on the same test date (from the lender statement and bank balances)
• Whether a cure right is still unused, the cure deadline and any proof of the cure payment (only if a cure is in play)
• Certified excess cash flow, the sweep percentage, the minimum cash and the debt eligible to be paid (only if a sweep is proposed or paid)
• The reporting date, currency and scale, and your materiality threshold
• Your last accepted review and its record (optional on a first run)

Helpful context (optional)

• The signed agreement and any amendments, not a summary of them.
• Debt and cash statements from the same date.
• A named reviewer who knows the loan and will answer the questions it raises.

Tools and access

• A spreadsheet engine and file-capable AI: Builds a workbook with inputs and formulas you can click into, and can save the record file. In plain chat it returns the same tables as text.
• The signed credit agreement: Holds the definitions, the cap, the cash netting rule and the cure right, each with a clause number you can cite.
• A chat AI that reads long documents: The definitions and cure clause decide the result. In plain chat, paste the exact wording.
• Claude, ChatGPT or Gemini: Any of them can do these sums in a chat and show each step.
• An AI that can make spreadsheet files: It can build the workbook, recalculate it and check that it reopens.
• Node.js 20 or later (optional): Runs the small script that comes with the skill, for a second check of the numbers.

Functions and deliverables

• Loan leverage covenant reviewer: Recheck debt limits when cash, earnings or loan terms change. Keep proposed fixes separate from proven compliance.
  • A covenant EBITDA bridge. Each add-back shows its support and whether it fits under the cap.
  • Net debt on the test date, the net debt ratio and signed headroom against the limit
  • A cure scenario, only if headroom is negative and the cure right is still open. Net debt stays unchanged.
  • A cash sweep scenario or update, only if a sweep is proposed or paid
  • Reviewer questions for anything missing, plus MISSING lines, checks that could not run and a record for next time
• Loan leverage and equity cure checker: Share loan rules, supported addbacks, debt and eligible cash. Get EBITDA checks, leverage headroom and a cure scenario only if allowed.
  • A bridge from EBITDA before addbacks to adjusted EBITDA, with any excess addback shown
  • The ratio, the debt the covenant allows and signed headroom
  • If a cure applies: the cure needed, the cure allowed, the new ratio and any gap left
  • A check of cure rules: receipt, deadline and how often
  • A list of what is MISSING and which checks were missed
• Excess cash debt payment checker: Share the cash sweep terms and balances. Check the required debt payment against available cash and debt.
  • The sweep the loan asks for
  • The repayment your cash allows, which is the smallest of the three limits
  • Ending cash and ending debt after that repayment
  • Any sweep left unpaid, shown on its own line
  • A list of missing facts and checks that could not run
  • A small workbook with the same sums, if your AI can make files
• Net debt covenant checker: Share debt, eligible cash and signed loan terms. Check the leverage ratio and room under the debt cap.
  • Net debt after the cash credit
  • Your ratio of net debt to EBITDA
  • The most net debt the contract allows
  • The room left, or the shortfall shown as a negative number
  • A list of missing facts and checks it could not run
  • A small workbook with the same sums, if your AI can make files
• me.md builder: Answer a few questions, or let your AI use what it remembers. Get one private file that tells any AI who you are.
  • One me.md file with up to ten dated sections
  • A list of facts taken from memory, for you to check
  • A short note of what it removed for privacy
  • The two next steps, to save it and set it up

Tasks you can use it for

• A new covenant compliance certificate arrives and you want to rebuild the net debt ratio from the agreement's own definitions.
• A company claims extra add-backs and you need to see how much the agreement allows under its cap.
• Headroom turned negative and you want to know if an equity cure is still allowed and how much it would take.
• A cash sweep was proposed or paid, and you want to see how it changes debt, cash and headroom.

Limits to check before starting

• Your covenant is about cash cover for debt payments, not the size of the debt. Use the Loan covenant cash cover reviewer.
• You only want the allowed add-backs for one test date. Use the Deal earnings adjustment checker.
• You only want net debt and headroom for one test date. Use the Net debt covenant checker.
• You only want to test an equity cure or size one cash sweep. Use the Loan covenant equity cure checker or the Excess cash debt payment checker.
• You want to know if the borrower is in breach in law, or if a waiver applies. A lawyer or your lender decides that.

Best way to use this role

Give it one clear outcome, the actual files and a definition of done. Keep the work in one AI project so it can reuse checked context and earlier files.

• Download the pack and give it to an AI that can read files, such as Claude, ChatGPT or Gemini. For a workbook, pick one that can create spreadsheets. In plain chat it returns the same tables as text.
• Say whether this is the first run. If not, paste the record from last time and attach the last accepted review. Then paste the agreement's definitions with clause numbers, and attach the certificate, the debt and cash balances and the back-up for each add-back.
• Read "changed since last review" first. Check each add-back, cash balance and cure record against the clause or statement it came from.
• Check the sums by hand: EBITDA plus the allowed add-backs gives covenant EBITDA. Net debt divided by that figure is the ratio, and the limit less the ratio is the headroom.
• If a cure was tested, check that it was used only when headroom was negative and the agreement still allowed it. Check that a proposed sweep did not change the real debt.
• Answer the questions or leave them marked MISSING. Nothing is sent to a lender or filed.

Read it as data

Read the complete role setup as JSON. Connect your AI to the AI Blocks MCP library and read aiblocks://roles/leverage-covenant-change-assistant for its role instructions and pinned sources.

This is a prepared AI role. No task has run. Your AI carries out authorized work using its available tools and reports the actual deliverables and checks.