medium · Corporate Credit Analysis
A project finance entity is 'sculpting' its debt service. The project has an expected Cash Flow Available for Debt Service (CFADS) of $80M in Year 1 and $120M in Year 2.
If the lenders require a minimum Debt Service Coverage Ratio (DSCR) of 1.25x, what is the maximum debt service permitted in Year 2?
- $64M
- $100M
- $150M
- $96M
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