medium · Corporate Credit Analysis
Apex Corp has a senior secured debt agreement with a 5.0x maximum leverage covenant based on 'Covenant EBITDA'. The company reports $150M of GAAP EBITDA but the agreement allows for $30M in synergy add-backs and $20M in non-cash compensation add-backs.
What is the maximum debt Apex can incur?
- $1.0B
- $850M
- $750M
- $1.2B
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