medium · Private Credit underwriting-credit-analysis
A direct lender is determining the maximum senior debt for a company with $25M in projected CFADS (Cash Flow Available for Debt Service). The required minimum DSCR is 1.3x.
If the senior debt is a 6-year term loan amortizing equally each year at an all-in rate of 6%, what is the maximum supportable debt quantum ($M) rounded to one decimal?
- $125.0M
- $108.3M
- $84.6M
- $65.1M
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