medium · Corporate Credit Analysis
SponsorBack Inc. is in danger of breaching its 6.0x leverage covenant. Current Net Debt is $1,200M and LTM EBITDA is $190M.
If the credit agreement allows an 'EBITDA add-back' equity cure, how much equity must the sponsor contribute to achieve compliance?
- $20M
- $190M
- $60M
- $10M
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