Debt Compliance Services: Managing Debt Compliance Through Comprehensive Risk-Based Cloud Solutions

Web pages link defined terms and section references. Questions, baskets, and calendar items link to their source covenant text. Researching covenant issues is quickly done with a powerful multi-agreement contextual search engine. Users click links instead of getting lost in flipping through hundreds of pages.

DCS’s web questionnaire process is effective because it asks only about relevant covenants and minimizes the risk of inadvertent false compliance by respondents. In a formal winnowing process, covenants involving administrative details, payment defaults, bankruptcy, lender requests, and redemptions are excluded.

Questions cut the legalese by asking respondents to simply report the facts of whether the covenant’s required or prohibited action happened or not, no matter how small. The finance team evaluates the materiality of the facts against their interpretation of the covenant.

Any nonfinancial default is easily preventable and owned by the finance team

DCS calendarizes regularly scheduled payments and document delivery to the actual business day. Tasks are assigned to owners with reminders. The system generates the covering email sending the required documents to the lenders.

The new DCS Covenant ChecklistSM is designed for companies who want an affordable quarterly covenant review they can quickly implement. DCS leverages its 15 years of experience with thousands of debt agreements to identify the covenants all lenders require. Using the robust questionnaire engine of the DCS Debt ManagerSM, the standard questions are customized to the client’s debt agreements.

DCS has numerous client success stories. A utility holding company with $22 billion in debt gave DCS the challenge of automating the compliance and document delivery requirements of over 100 debt agreements for 20 operating entities in seven states. The implementation included writing “global” questionnaires for multiple utilities, minimizing the compliance burden. Both the Treasurer and CFO were pleased because the automation significantly reduced staff compliance time, supporting their objective of maintaining a deliberately lean Treasury.

The Checklist and the Debt Manager incorporate decades of experience in capital markets and treasury combined with cutting-edge web automation. As a trusted advisor, DCS delivers unsurpassed expertise in using its cloud solutions to help its clients effectively and efficiently manage the complicated realm of debt compliance.