Is your corporate financing governed by a syndicated loan or a bond? It's worth taking advantage of the "Leasing Basket"!
In companies with large-volume financing structures — typically syndicated loans, bonds, or Schuldschein loans — there is often a prevailing assumption that covenants severely limit any additional financing flexibility.
In practice, this leads to leasing being used either not at all or only for traditional asset categories such as vehicle fleets.
Yet there is an enormous economic lever for value creation hidden here:
Syndicated loan agreements and bond terms precisely define which additional liabilities may be incurred without the consent of the syndicate banks or bondholders (referred to as "Permitted Financial Indebtedness").
These provisions include a volume cap for leasing liabilities — the so-called Leasing Basket.
Particularly in the current challenging economic environment, it makes sense to fully exploit this headroom:
🔹 Longer tenors
Compared to loans, asset financing allows for significantly longer terms — even extending beyond the maturity of the main financing facility!
🔹 More attractive terms
Asset-backed security enables more favorable conditions in the current market environment!
🔹 Tax and balance sheet optimization
Where interest barrier rules apply, leasing is superior to loans and additionally enables the optimization of financial ratios!
🔹 Preserving liquidity reserves
This keeps the working capital credit line open and available for day-to-day operations.
The strategic use of the Leasing Basket makes #ValueCreation possible!
We would be happy to assess the available headroom in your financing agreements together with you!
Let's talk!
Is your corporate financing governed by a syndicated loan or a bond? It's worth taking advantage of the "Leasing Basket"
