medium · Private Credit underwriting-credit-analysis
A borrower's credit agreement defines 'Covenant EBITDA' as reported EBITDA plus non-recurring charges and projected synergies, capped at 20% of reported EBITDA. The company reports 50m in GAAP EBITDA, 8m in one-time restructuring costs, and 15m in projected synergies.
What is the EBITDA used for covenant testing?
- 73m
- 68m
- 60m
- 50m
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