medium · Private Credit documentation-covenants-terms
Titan Industrials has $300,000,000 in total debt and $60,000,000 in LTM Adjusted EBITDA. The lender has set a 6.0x Total Leverage covenant.
If Titan draws an additional $30,000,000 on its Revolver to fund a working capital spike, what is the new EBITDA decline headroom?
- 5.0%
- 16.7%
- 10.0%
- 8.3%
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