medium · Private Equity advanced-lbo
An LBO candidate is being evaluated for a possible takeover. The target has LTM EBITDA of 80.0 million. A lender is willing to provide financing at a maximum blended interest rate of 7%, provided the company maintains a minimum interest coverage ratio of 2.0×.
Based on these constraints, what is the maximum debt capacity for this transaction?
- 571.4 million
- 285.7 million
- 400.0 million
- 1.14 billion
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