hard · Private Equity & LBOs
A portfolio company has $100M of Senior Debt at SOFR + 400 bps and $50M of Mezzanine Debt at a 12% all-in rate (8% cash / 4% PIK). If EBITDA is $40M and CapEx is $5M, what is the Fixed Charge Coverage Ratio (FCCR) if the Senior Debt has a 5% mandatory annual amortization and the tax rate is 20%? Assume SOFR is 5%.
- 1.72x
- 2.10x
- 1.64x
- 1.48x
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