medium · Debt Capital Markets
In a 'Ratio Debt' incurrence test, the EBITDA used in the denominator is typically based on:
- The Last Twelve Months (LTM) period, adjusted pro forma for any recent acquisitions or divestitures.
- The EBITDA from the single best quarter in the company's history.
- The average EBITDA since the company was founded.
- The projected EBITDA for the next three years.
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