medium · Corporate Credit Analysis fsa
A sponsor-owned industrial firm has a total debt of $900 million and GAAP LTM EBITDA of $150 million. The firm claims $30 million in 'run-rate synergies' and 10 million in 'non-recurring restructuring charges'.
If an analyst accepts only 50% of the synergies, what is the 'Analytical Leverage' (Total Debt / Analytical EBITDA)?
- 5.63x
- 4.74x
- 6.00x
- 5.14x
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