medium · Private Credit underwriting-credit-analysis
If a $75,000,000 RCF has a30%spring and the borrower is at $22,000,000 drawn, what is the maximum EBITDA decline allowed if the current EBITDA is $15,000,000, Net Debt is $80,000,000, and the limit is 5.5x?
- Any decline; the covenant is not triggered.
- EBITDA cannot fall below $16,000,000.
- EBITDA cannot fall below $14,545,455.
- $0 decline allowed; it is already in breach.
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