Agreement intelligence for private credit

Every covenant figure, traced to the words that authorise it.

ClauseTrace reads an executed credit agreement and returns a structured covenant specification. No field exists in it without a citation verified against the source document.

Request access See the worked example
130

Quotes verified against source

0

Quotes dropped as unverifiable

409

Cited fields across two agreements

Agreements analysed · from public filings

Inspired Education Holdings

Senior facilities agreement, 2021. LMA-style.

209 cited fields

Luxfer Holdings PLC

Credit agreement, 2011. US-style. NYSE: LXFR.

200 cited fields

Your own infrastructure

The reading layer runs under your own model provider account, or fully local. Documents never leave your control.

Proposing layer

The problem

The figure you must test is rarely defined where the covenant sits.

One leverage covenant in a real 2021 facilities agreement. Three hops before the arithmetic appears, and every hop is a place a manual read can stop too early. Keep scrolling to walk it.

The problem One leverage covenant · Inspired Education Holdings · senior facilities agreement, 2021
Step 01Clause 27.2
27.2 FINANCIAL COVENANT

The covenant

Names the metric and sets the ratio. Defines nothing.

Senior secured net leverage 6.25:1
Step 02Clause 1.1
SEE SCHEDULE

Hop one

Consolidated EBITDA, defined only by cross reference. Points onward.

Definition, not a formula
Step 03Clause 27.1
PRO FORMA OVERLAY

Hop two

Adds a pro forma overlay for acquisitions and disposals. Still no formula.

Adjusts the base, defines no base
Step 04Schedule 17
15 ADJUSTMENTS ivx

The formula

The arithmetic, at last. Fifteen separate add backs and deductions.

Three hops from the covenant
Step 05 · flaggedClause 28.1
COVENANT TABLE

Not in the schedule

A second, tighter test the covenant table never mentions. From the schedule alone you never meet it.

Incurrence test 3.75:1
01 / 05 Scroll to walk the chain Swipe to walk the chain

Method

Ask for the words. Derive everything else.

The model returns the contract's exact language and nothing more. Page, clause and character span are computed afterwards by matching that quote back into the source.

What is the leverage covenant and when is it tested?

Clause 27.2 · page 102

Which definitions freeze GAAP, and as at what date?

Four definitions · page 31

Is cash netting capped?

Total Net Debt · page 44

What must be delivered, to whom, and by when?

Reporting schedule · page 88

Which add backs are capped, and at what percentage?

Schedule 17 · page 214

What happens on a breach, and is there an equity cure?

Clause 29.4 · page 110

Product

Three layers, because the failure modes differ.

A language model reads prose well and does arithmetic badly. Code is the reverse. Neither should be trusted to sign anything off.

The citation gate

No field exists without a verified quote.

VERIFIED SPAN

Review it beside the source passage

Confirm, edit, reclassify or reject each field.

Consolidated EBITDA · cl 1.1 · p31

“…determined in accordance with GAAP as in effect on December 31, 2018…”

Confirm Edit Reclassify Reject

What the export carries

One document an auditor can check line by line.

Verbatim source text Clause number Page Character span Match quality Document SHA-256 Extractor version Approver + timestamp Unreviewed flag

The specification

Structured, typed, and every row cited.

Verbatim source · redacted for display Clause 27.2Page 102Match exact
Verbatim source · redacted for display Clause 27.2Page 102Match exact
Verbatim source · outside the covenant schedule Clause 28.1Match exactNot in the covenant table
Verbatim source · redacted for display Definition Total Net DebtPage 44Match exact

Built to survive an audit.

What holds up when someone asks where a number came from.

Verbatim quotes only

The model never paraphrases and never computes.

Unverifiable quotes dropped

A missing field, never a confident figure pointing nowhere.

Byte identical re-runs

Two runs over the same corpus produce the same output.

Runs on your infrastructure

Under your own model provider account, or fully local.

Full approval trail

Who reviewed each field, when, against which document hash.

LMA and US-style

Direct lending, mezzanine and special situations agreements.

Findings

What it found in the Inspired Education and Luxfer agreements.

Two real credit agreements, both filed publicly: a 2021 senior facilities agreement for Inspired Education Holdings and a 2011 credit agreement for Luxfer Holdings PLC (NYSE: LXFR). None of this came from a summary. Each finding is anchored to a quoted passage you can pull and check yourself.

i

A second, tighter leverage test hidden outside the schedule.

Clause 28.1 carries a 3.75:1 incurrence test sitting outside the main covenant schedule, which only steps down from 6.25:1 to 5.50:1. The binding constraint was never in the covenant table.

Inspired Education 2021clause 28.1
ii

Frozen GAAP, in four separate definitions.

Lease treatment is pinned to “GAAP as in effect on December 31, 2018.” Testing today's accounts under today's accounting standards produces a different number than the agreement actually requires.

Inspired Education 2021four definitions
iii

No cap on cash netting.

In the “Total Net Debt” definition, cash is deducted with no ceiling, unlike most agreements which cap this. Material if a borrower nets an unusually large cash balance.

Luxfer Holdings 2011Total Net Debt
iv

A compliance certificate citing statements nobody delivers.

The certificate is defined against quarterly statements that appear nowhere in the actual reporting schedule. A genuine drafting gap, surfaced only by cross-reading two separate sections against each other.

Luxfer Holdings 2011compliance certificate

Request access

Read the agreement. Check the maths. Show the receipts.

Onboarding starts with one of your executed agreements. You get the specification back with every field cited, and you decide whether it holds up.

  1. 01

    You send one executed agreement

    A PDF is enough. No data room, no integration.

  2. 02

    We return the cited specification

    Every field with its quote, clause and page.

  3. 03

    You check it against the document

    No cost, no commitment, and the cited specification is yours to keep either way.

Early access is deliberately small. Extraction, citation verification, the review interface and the evidence pack work today. Certificate reconciliation, amendment tracking and the obligations calendar do not yet. Design partners shape that order.

Documents stay yours. Extraction can run entirely on your own infrastructure.