A negative covenant package similar to (or based on) those used in high-yield bonds which are usually given on an incurrence rather than maintenance basis. The effect is to loosen the lender's control since incurrence tests must be met only at the time of a specific event (such as the incurrence of debt) rather than the traditional maintenance test which must be met at all times or at periodic intervals.

No financial covenants; or financial covenants (usually the leverage ratio) that apply to the revolving loans only (and not the term loans).