medium · Private Credit & Debt underwriting-credit-analysis
A portfolio company, Meridian Logistics, has a maintenance covenant requiring a Leverage Ratio ≤ 4.25x. As of Q3, the company reports Net Debt of $346.0M and an LTM Adjusted EBITDA of $94.0M.
By what percentage must the LTM EBITDA decline for the company to breach this covenant, assuming Net Debt remains constant?
- 18.1%
- 11.2%
- 15.4%
- 13.4%
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