Cash sweep definition

Produced in partnership with Ilham Fakhrur Raaziy of Assegaf Hamzah & Partners

What does Cash sweep mean?

Leveraged finance facilities agreements often provide that a percentage of the group's excess cashflow be applied in prepayment of the facilities. This percentage may start at 100% but often reduces in stages as the group's leverage ratio improves. Excess cashflow is typically defined in the financial covenants section of the facilities agreement and may constitute, eg the group's cashflow for the relevant year, less debt service payments and any voluntary prepayments.

Discover our 11 Practice Notes on Cash sweep

Read the latest 1 News articles on Cash sweep

Speed up all aspects of your legal work with tools that help you to work faster and smarter. Win cases, close deals and grow your business–all whilst saving time and reducing risk.

  Case studies

"LexisNexis is great as I can find the answers I am looking for really quickly. I believe that nothing should be more than 6 clicks away - and the products from LexisNexis deliver on this standard"


Access all documents on Cash sweep