medium · Private Credit underwriting-credit-analysis
Horizon Staffing has an EBITDA of $22 million and total cash interest of $15.5 million. The credit agreement requires a minimum Interest Coverage Ratio (ICR) of 1.50x.
Is the company in compliance?
- No, the actual ICR is 0.70x.
- Yes, because the company has an equity cushion.
- No, the actual ICR is 1.42x.
- Yes, the actual ICR is 1.50x.
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