hard · Corporate Credit Analysis credit-metrics

A company has $400 million of LTM EBITDA. It is acquiring a target for $1,000 million funded entirely with new debt. The target has $120 million of LTM EBITDA, and the acquirer expects $30 million in annual synergies.

What is the 'Pro-Forma Synergy-Adjusted' total leverage if existing debt is $1,500 million?

  1. 4.31x
  2. 4.55x
  3. 4.81x
  4. 5.00x

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