medium · Private Credit documentation-covenants-terms
A 'Minimum EBITDA' covenant is often used for which type of borrower?
- A regulated utility company with stable and highly predictable cash flows.
- A mature, financially stable, low-growth company that carries low leverage overall.
- A company that has just fully repaid all outstanding debt.
- A high-growth company that currently has negative or very thin EBITDA.
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