medium · Private Credit & Debt underwriting-credit-analysis
A direct lender provides a $200M floating-rate loan at SOFR + 575 bps. Currently, SOFR is 4.50% and the borrower's EBITDA is $34.4M.
If SOFR rises to 7.50% and EBITDA simultaneously declines by 20%, what is the resulting interest coverage ratio?
- 1.30x
- 0.85x
- 1.68x
- 1.04x
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