medium · Corporate Credit Analysis credit-metrics
Zenith Corp has net debt of $800M and LTM EBITDA of $220M. It is subject to a 5.0x maximum net leverage covenant.
What is the maximum percentage decline in EBITDA that the company can sustain before breaching the covenant, assuming net debt remains flat?
- 10.0%
- 72.7%
- 37.5%
- 27.3%
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