medium · Private Equity
Titan Manufacturing has a leverage covenant of 5.0x Net Debt/EBITDA. Currently, the company has $500M in Net Debt and reported LTM EBITDA of $95M. The sponsor chooses to exercise an 'equity cure' using the deemed-EBITDA addition method.
What is the minimum equity injection required to bring the company into compliance?
- $5M
- $4.75M
- $25M
- $50M
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