Sample dataNorthwind Manufacturing, Inc. · $45M senior secured credit facility — Term Loan + Revolver

Loan covenant compliance

First Commercial Bank · Q1 2026 · certificate due 2026-04-30

Overall status

Breach · 3 pass · 1 watch · 1 breach

Debt Service Coverage (DSCR)

In compliance

Cash available to service debt, after taxes and unfinanced capex.

Current

2.01×

Covenant

≥ 1.20×

Total Leverage

Watch

Funded debt measured against trailing EBITDA.

Current

3.27×

Covenant

≤ 3.50×

Fixed-Charge Coverage (FCCR)

In compliance

Earnings cover debt service plus rent and other fixed charges.

Current

1.78×

Covenant

≥ 1.10×

Minimum Liquidity

In compliance

Unrestricted cash plus undrawn revolver availability.

Current

$3.9M

Covenant

≥ $500K

Maximum Capex

Breach

Trailing capital expenditure against the annual ceiling.

Current

$1.1M

Covenant

≤ $1M

Headroom detail

How much room each covenant has before it breaches, as of 2026-Q1.

Debt Service Coverage (DSCR)

In compliance

Headroom +68%tested quarterly

Total Leverage

Watch

Headroom +7%tested quarterly

Fixed-Charge Coverage (FCCR)

In compliance

Headroom +62%tested quarterly

Minimum Liquidity

In compliance

Headroom +680%tested quarterly

Maximum Capex

Breach

Headroom -5%tested ttm

Test history

Every covenant computed at each test date — watch the trend, not just the latest quarter.

Covenant	Covenant level	2024-Q4	2025-Q1	2025-Q2	2025-Q3	2025-Q4	2026-Q1
Debt Service Coverage (DSCR)	≥ 1.20×	2.22×	2.16×	2.12×	2.09×	2.06×	2.01×
Total Leverage	≤ 3.50×	3.13×	3.17×	3.21×	3.22×	3.23×	3.27×
Fixed-Charge Coverage (FCCR)	≥ 1.10×	1.94×	1.90×	1.86×	1.84×	1.82×	1.78×
Minimum Liquidity	≥ $500K	$3.9M	$3.9M	$3.9M	$3.9M	$3.9M	$3.9M
Maximum Capex	≤ $1M	$820K	$870K	$910K	$950K	$990K	$1.1M

Forward projection

Downside case (EBITDA −5% per quarter, scheduled amortization) — where compliance breaks first.

From 2026-Q1, next 4 quarters

1 projected breach

Covenant	2026-Q2	2026-Q3	2026-Q4	2027-Q1	First breach
Debt Service Coverage (DSCR)	1.89×	1.77×	1.66×	1.56×	—
Total Leverage	3.25×	3.23×	3.19×	3.14×	—
Fixed-Charge Coverage (FCCR)	1.69×	1.60×	1.51×	1.43×	—
Minimum Liquidity	$3.9M	$3.9M	$3.9M	$3.9M	—
Maximum Capex	$1.1M	$1.1M	$1.1M	$1.1M	2026-Q2

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Sample data (Northwind Manufacturing).

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