medium · Private Credit & Debt underwriting-credit-analysis
A borrower has $500 million in total debt and $80 million in reported EBITDA. Adjustments include $5 million in severance and a $10 million gain on the sale of a warehouse.
What is the net impact on the leverage multiple?
- 0.42x increase
- 1.25x increase
- 0.42x decrease
- 0.38x decrease
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