Decision needed
Approve or reject the pricing exception and covenant modification for Acme Corp.
Executive summary
Acme requests a pricing exception (22% discount) and a covenant modification on its renewal facility. The updated model lowers the revenue forecast, and required approvals are incomplete, so the packet is not approval-ready.
What changed since last review
- Revenue forecast revised from $42M to $38M in the updated model.
- Legal approval is still pending.
- Project plan still references the prior approval date.
Decision readiness
Committee packet is not ready. Two blockers remain: Credit Officer approval and final covenant tracker.
Gate
Status
Details
Action
Covenant tracker
Blocking
Final tracker is required before the committee can decide.
Credit Officer approval
Blocking
Requested discount is 22%, above the RM approval threshold of 15%.
Legal approval
Pending
Legal review has not completed.
DSCR calculation
Passed
Recalculated at 1.28x and matches the updated financial model.
None
Relationship Manager approval
Approved
RM has signed off on the renewal package.
None
Conflicting evidence
Pricing doc and customer success plan show different discount levels (22% vs 18%).
BetweenPricing exceptionCustomer success plan
Key financial facts
- Requested discount: 22% (standard threshold 15%).
- Debt service coverage ratio: 1.28x.
- Facility: commercial renewal with covenant modification.
Open questions
- ?Will the covenant modification hold if revenue lands below $38M?
- ?Does the 22% discount require committee sign-off beyond Credit?
Permission limitations
Legal memo is restricted — its contents were not used.