medium · Corporate Credit Analysis
A company has a Net Leverage covenant of 5.00x. Debt is $700 million and LTM EBITDA is $150 million. The company uses $50 million of its $100 million cash balance to fund a stock buyback.
What is the turns cushion after the buyback?
- 0.33x
- 0.67x
- 1.00x
- 4.33x
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