medium · Private Credit & Debt market-sourcing-sponsor-dynamics
Horizon Staffing has $20M in EBITDA and $100M in debt. It undergoes a 'Dividend Recap' by issuing $40M in new debt to pay a dividend.
What is the increase in total leverage?
- 7.0x
- 1.5x
- 2.0x
- 0.5x
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