medium · Private Credit documentation-covenants-terms
A private debt manager is testing a leverage covenant. 'Consolidated EBITDA' is defined as Net Income plus interest, taxes, and D&A, plus restructuring charges capped at $5M. The company has $20M in Net Income, $10M interest, $5M taxes, $10M D&A, and $8M in restructuring costs.
What is the Covenant EBITDA?
- $50M
- $45M
- $58M
- $53M
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