hard · Private Credit & Debt
An LBO target has an LTM EBITDA of 80.0M. The sponsor requires a minimum interest coverage ratio (ICR) of2.0x to satisfy senior lenders.
If the proposed capital structure assumes a blended interest rate of 7.0% across all debt tranches, what is the implied maximum sustainable debt for this transaction?
- $160.0M
- $1.14B
- $571.4M
- $400.0M
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