A private equity firm is considering financing options for the acquisition of a mid$-$sized manufacturing company. Among the proposals is a $$covenant light$$ loan agreement.

Which of the following scenarios best describes the characteristics of a $$covenant light$$ loan agreement in this context?

a$.$ The loan agreement includes financial maintenance covenants, requiring the company to maintain a debt$-$to$-$equity ratio of not more than $2$:$1$ and interest coverage ratio of at least $3$x$,$ measured quarterly.

b$.$ The loan agreement includes minimal financial maintenance covenants and no restrictions on mergers, acquisitions, or asset sales.

c$.$ The loan agreement imposes operational restrictions, including limits on capital expenditures, acquisitions, and the sale of significant assets without lender approval.

d$.$ The loan agreement requires the company to place a significant portion of its cash flows into a reserve account controlled by the lender, to be used specifically for debt service.