medium · Private Credit & Debt underwriting-credit-analysis
A borrower has an EBITDA of $50.0 million and total debt of $250.0 million. It plans to make an acquisition of a company with $10.0 million in EBITDA for a purchase price of $80.0 million, funded entirely with a new 'incremental' term loan.
What is the pro-forma leverage ratio?
- 8.00x
- 5.00x
- 6.60x
- 5.50x
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