medium · Debt Capital Markets credit-ratings-risk
A corporate issuer reports EBITDA of $60 million and total debt of $270 million. The credit agreement contains a leverage covenant that steps down from 5.25x to 4.75x.
Following the step-down, what is the remaining leverage cushion?
- 4.50x
- 0.50x
- 0.75x
- 0.25x
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