easy · Corporate Credit Analysis
OmniCorp has $2.0B of debt and an EBITDA of $500M (4.0x leverage). A private equity sponsor conducts a dividend recap, raising an additional $1.0B of debt to pay themselves.
If EBITDA remains flat, what is the new leverage ratio?
- 4.0x
- 6.0x
- 2.0x
- 5.0x
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