medium · Private Credit documentation-covenants-terms
Apex Manufacturing has an LTM Adjusted EBITDA of $40,000,000 and Total Debt of $220,000,000. The Credit Agreement specifies a maximum Total Leverage Ratio maintenance covenant of 6.5x. Calculate the percentage by which EBITDA can decline before a covenant breach occurs.
- 15.4%
- 84.6%
- 18.2%
- 1.0x
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