hard · Private Credit & Debt
A PE fund's portfolio company has a maintenance leverage covenant set at 5.50x. Current Net Debt is $200 million and LTM EBITDA is $40 million.
By what percentage can EBITDA decline before a 'Technical Default' occurs, assuming debt remains constant?
- 5.0%
- 9.1%
- 15.0%
- 11.0%
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