medium · Private Equity & LBOs
A target company has an LTM EBITDA of $80M. Lenders require a minimum interest coverage ratio of 2.0×.
If the weighted average blended interest rate for the acquisition financing is 7%, what is the implied maximum debt supported by this coverage constraint?
- $816.3M
- $400.0M
- $571.4M
- $1,142.8M
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