medium · Corporate Credit Analysis credit-metrics
A borrower has a springing covenant that activates when the Revolver is drawn at 35% of its $200 million commitment. Current draw is $80 million. Debt is $600 million and EBITDA is $120 million.
If the springing covenant is a 6.00x Total Leverage test, what is the cushion?
- 1.17x
- No cushion / Covenant inactive
- 5.00x
- 1.00x
Sign up free to see the explanation and track your rank →
More Corporate Credit Analysis credit-metrics practice
- Apex Manufacturing has a total exposure at default (EAD) of… — What is the annual expected
- If EBITDA is $150M, what is the entry leverage multiple?
- What is its EBITDA/Interest coverage ratio?
- What is the maximum percentage decline in EBITDA that the company can sustain before breac
- What is its CET1 ratio?
- What is the firm's net leverage ratio?
- If the current exposure at default (EAD) is $200M, what is the calculated Expected Loss (E
- Zenith Corp has an Exposure at Default (EAD) of $100M, a Pro… — What is the Expected Loss