medium · Corporate Credit Analysis covenants
SponsorBack Inc. is in danger of breaching its 6.0x leverage covenant. Current Net Debt is $1,200M and LTM EBITDA is $190M.
If the credit agreement allows an 'EBITDA add-back' equity cure, how much equity must the sponsor contribute to achieve compliance?
- $20M
- $190M
- $60M
- $10M
Sign up free to see the explanation and track your rank →
More Corporate Credit Analysis covenants practice
- A credit agreement requires a borrower to maintain a Net Lev… — What type of covenant is t
- Ironclad Corp has a credit agreement that requires the firm… — This is an example of what
- In a well-known creditor-on-creditor move, a company transfers its valuable trademarks and
- Serta Simmons Bedding executed a transaction where 65% of it… — What is this tactic called
- What is the primary implication for creditors of the parent company?
- If the company utilizes the full basket to fund an acquisition, what is the minimum EBITDA
- What is the total capacity in the basket for a dividend payment?
- If the company pays a $40M dividend at the end of Year 1, what is the remaining basket cap