easy · Private Credit documentation-covenants-terms
A credit agreement contains a Net Debt / EBITDA maintenance covenant of 4.50x. At the end of Q3, the company has Net Debt of $180M and LTM EBITDA of $45M.
What is the company's 'covenant headroom' in EBITDA terms?
- 0%
- 25.0%
- $5M
- 11.1%
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