hard · Corporate Credit Analysis
An issuer has Net Debt of $900 million and LTM EBITDA of $240 million. It is subject to a maximum Net Leverage covenant of 5.50x.
Assuming no debt reduction, what percentage decline in EBITDA would trigger a covenant breach?
- 31.8%
- 43.6%
- 15.0%
- 25.0%
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