hard · Private Credit & Debt
Project Phoenix is a $500,000,000 LBO with $300,000,000 of debt. The debt has a 5% annual mandatory amortization. EBITDA is $75,000,000. Capex is $8,000,000, taxes are $7,000,000, and cash interest is $21,000,000. The ECF sweep is 50%. Calculate the Debt Service Coverage Ratio (DSCR) for Year 1, defining DSCR as Operating Cash Flow divided by Total Debt Service.
- 1.25x
- 2.86x
- 1.67x
- 2.14x
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