hard · Private Credit underwriting-credit-analysis
A middle-market company has LTM EBITDA of $30,000,000, maintenance capex of $4,000,000, and cash taxes of $2,000,000. Debt service consists of $8,000,000 in cash interest and $2,000,000 in scheduled principal.
If the Fixed Charge Coverage Ratio (FCCR) covenant is 1.20x, what is the percentage EBITDA decline required to breach the covenant?
- 40.00%
- 20.00%
- 46.67%
- 33.33%
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