medium · Corporate Credit Analysis
Titan Power, a utility, is being acquired. Pro-forma financials show $4,200M in debt and $1,100M in EBITDA. However, the analyst notes $500M of the debt is a hybrid security with '50% equity content' per rating agency methodology.
What is the analytical Debt/EBITDA ratio for rating purposes?
- 4.15x
- 3.59x
- 3.82x
- 3.36x
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