hard · Corporate Credit Analysis
A sponsor-backed firm, 'Project Alpha', breaches its 6.00x leverage covenant with a 6.25x result (Debt: $1,875M; EBITDA: $300M). The credit agreement allows an 'EBITDA add-back' equity cure.
What is the minimum equity contribution required from the sponsor to cure the breach?
- $25M
- $12.5M
- $75M
- $18.75M
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