hard · Private Credit documentation-covenants-terms
A borrower has a senior debt facility of 200.0M. The credit agreement contains a leverage covenant of5.75xand an 'equity cure' provision. At the end of Q3, EBITDA falls to32.0M.
What is the minimum equity cure amount the sponsor must inject to restore compliance with the leverage covenant?
- $20.0M
- $8.0M
- $16.0M
- $1.75M
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