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Welcome to Debt Compliance Services LLC

Many Debt Compliance Processes Have These Flaws:

  • A serious underestimation of the likelihood of a technical default
  • Unjustified complacency about the consequences of a default
  • No corporate policy, so there are no objectives, responsibilities, and documentation
  • Low cooperation of people outside of treasury
  • No covenant checklist or a focus on only 10-15 financial ratios, permitted baskets, and deliverable covenants, ignoring the 60 to 80 other covenants that exist in BB and B-rated agreements, respectively
  • No standard interpretation of covenants, leading to wasted time re-interpreting them every quarter, divergent and incomplete interpretations, and unnecessary legal bills
  • With the inevitable turnover, the new staff's learning curve is steep, risking inexperienced and superficial reviews

The DCS Covenant Manager℠ SaaS Solution

The DCS Covenant Manager℠ has three integrated, but separately available, turnkey cloud applications:

  1. The DCS Debt Manager℠
    • Debt agreements are converted to easy-to-navigate webpages linking defined terms and section references, with multi-agreement contextual searching and page commenting
    • Comprehensive covenant checklist, permitted baskets analysis, and static annual calendar.
  2. The DCS Compliance Manager℠
    • Web questionnaires about specific covenant compliance directed to key financial and business people in their areas of responsibility and knowledge
    • Substantial reporting capabilities for validating and evaluating responses.
  3. The DCS Calendar Manager℠
    • All recurring deliverables and payments are scheduled out to each debt’s maturity by actual business day per the debt's business day convention and national holidays
    • Each task is assigned an owner and a manager with email reminders and warnings
    • Can be easily expanded to include other regularly occurring departmental tasks

The DCS Covenant Manager℠ Benefits

  • Provides a clear overview with minimal effort that far exceeds the understanding of any individual or team
  • Identifies potential covenant issues so that they can be monitored or mitigated, minimizing unwelcome surprises for senior management and lenders
  • Questions about the covenant implications of strategic initiatives and operational changes can be quickly, accurately and consistently answered
  • The company’s key business stakeholders now understand the restrictions imposed by debt obligations in their areas of responsibility, minimizing actions that could inadvertently breach a covenant
  • The cost can be capitalized with the debt issuance costs, typically amortized as a fraction of a bp of interest
  • As a cloud service, there's no implementation or maintenance by IT
  • Permanent, repeatable process that can be easily and accurately transferred to new staff
  • Saves valuable treasury staff time for other department priorities

Ask for a Web Demo

Call Jeff Wallace at 303-442-4433 (MT) or Jim Simpson at 203-329-7491 (ET) for a 45-minute, no obligation web demo of our services.