hard · Corporate Credit Analysis cap-structure
An issuer has a $500 million Term Loan with a pricing grid. The current margin is 350 bps. There is a step-down to 325 bps at 3.0x leverage. Current EBITDA is $150 million and Debt is $480 million (3.2x).
If the issuer acquires a company for $100 million in cash that generates $40 million in EBITDA, what is the new margin?
- 325 bps
- 375 bps
- 350 bps
- 300 bps
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