hard · Corporate Credit Analysis cap-structure
A sponsor-backed company has a $500 million TLB with a margin of 400 bps. The pricing grid allows for a 25 bps step-down if Total Leverage falls below 4.5x. Current EBITDA is $100 million and Total Debt is $460 million.
If the company realizes $10 million in run-rate cost synergies that are permitted as EBITDA add-backs, what is the new all-in margin?
- 350 bps
- 425 bps
- 375 bps
- 400 bps
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