medium · Private Credit underwriting-credit-analysis
A borrower has a $10,000,000 ABL facility (fully drawn) and a $50,000,000 Unitranche. The credit agreement defines 'Net Debt' as total debt minus cash, but caps the cash offset at $5,000,000.
If the company has $12,000,000 in cash and $15,000,000 in EBITDA, what is the Net Leverage for covenant purposes?
- 3.67x
- 3.0x
- 3.2x
- 4.0x
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