medium · Private Credit & Debt documentation-covenants-terms
BlueSky Aviation has $100 million of debt and $25 million of EBITDA. Its accordion allows debt up to 4.5x leverage. BlueSky draws $10 million to buy back shares.
How does this affect its 'available amount' for future accordions?
- It only reduces it if the shares are cancelled.
- It has no effect because share buybacks use equity baskets.
- It reduces it by 10 million.
- It increases it by 10 million.
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