medium · Private Credit documentation-covenants-terms
Precision Manufacturing has $90,000,000 in debt and $18,000,000 in EBITDA (5.0x actual). The covenant is 5.5x.
If EBITDA grows by 10% and debt remains constant, what is the new headroom?
- 19.1%
- 17.4%
- 21.0%
- 9.1%
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