medium · Debt Capital Markets credit-ratings-risk
A borrower is subject to a 5.0x maintenance leverage test. Current debt is $750 million and EBITDA is $160 million. The company plans to draw $50 million on its revolver to fund a project.
What will be the new leverage ratio?
- 5.31x
- 4.38x
- 4.69x
- 5.00x
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