hard · Corporate Credit Analysis credit-metrics

A TLB agreement features a mandatory cash sweep of 75% of Excess Cash Flow (ECF). For the fiscal year, the firm generates EBITDA of $300 million, pays $60 million in cash interest and $40 million in cash taxes. Capex is $70 million, and a working capital build consumes $20 million. There is a mandatory amortization payment of $15 million already made.

What is the voluntary prepayment required by the sweep?

  1. $95.00 million
  2. $150.00 million
  3. $71.25 million
  4. $82.50 million

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