hard · Private Credit underwriting-credit-analysis
A borrower's credit agreement defines 'Excess Cash Flow' as EBITDA minus capex, taxes, and interest.
If EBITDA is $60M, Capex is $10M, Taxes are $5M, and Interest is $15M, and the agreement mandates a 75% excess cash flow sweep, how much principal must the borrower prepay?
- $33.75M
- $7.5M
- $45M
- $22.5M
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