medium · Private Credit & Debt documentation-covenants-terms
A middle-market company has $180,000,000 of debt and $40,000,000 of Adjusted EBITDA. The Credit Agreement contains a 'springing' leverage covenant set at 5.5x that activates when Revolver utilization exceeds 35%.
If the Revolver is currently 20% drawn, what is the 'effective' EBITDA headroom?
- Unlimited
- 15.0%
- 22.2%
- 18.2%
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