medium · Private Credit underwriting-credit-analysis
A portfolio company reports a GAAP EBITDA of $50 million. The sponsor proposes add-backs including $5 million in non-recurring LBO transaction fees, $3 million in unrealized pro-forma synergies, and $2 million in stock-based compensation.
If the total debt is $300 million, what is the 'Adjusted Leverage' as viewed by a conservative direct lender who haircuts synergies by 50% and accepts other adjustments?
- 5.13×
- 5.26×
- 6.00×
- 5.45×
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