medium · Private Credit documentation-covenants-terms
SteelCore Industrials is subject to an EBITDA floor covenant of $30,000,000 and a Total Leverage covenant of 5.0x. Current EBITDA is $40,000,000 and Total Debt is $140,000,000.
What is the effective percentage headroom before a breach?
- 30.0%
- 15.0%
- 25.0%
- 44.0%
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