hard · Corporate Credit Analysis
Delta Retail has a Net Debt of $1,200M andLTM EBITDAof $400M. The company's credit agreement contains a maximum Net Leverage maintenance covenant of 4.50x.
Assuming a 1.33x cash-flow feedback factor where EBITDA shortfalls are funded by the revolver, what percentage EBITDA decline triggers a breach?
- 50.0%
- 15.0%
- 25.6%
- 33.3%
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