hard · Private Credit documentation-covenants-terms
A company has EBITDA of $85 million, cash interest of $17.7 million, and a leverage covenant set at 4.25×.
If the net debt is $272 million, how much 'headroom' does the company have on its leverage covenant expressed as a percentage?
- 32.8%
- 1.05×
- 13.4%
- 24.7%
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