Covenant Headroom
🛡️ Public data only — no PHI permitted on this instance.
Debt Covenant Headroom Monitor
Covenant compliance · stress scenarios · cure rights · amortization schedule · maturity wall — 1,545 corpus deals
EBITDA TTM
$55.0M
Total Debt
$275.0M
Leverage
5.00x
Blended Rate
10.36%
Next Test
2026-06-30
Overall
MONITORING
Covenants
7
Corpus
1,545
Stress-Test Leverage vs Covenant
Covenant Compliance Matrix
| Covenant | Actual | Limit | Direction | Headroom | Risk |
|---|---|---|---|---|---|
| Total Leverage (Debt/EBITDA) | 5.00 | 6.25 | max | +20.0% | medium |
| First-Lien Leverage | 3.50 | 4.50 | max | +22.2% | low |
| Net Leverage (Debt - Cash)/EBITDA | 4.70 | 6.00 | max | +21.7% | low |
| Interest Coverage (EBITDA/Interest) | 2.35 | 2.25 | min | +4.6% | medium |
| Fixed Charge Coverage | 2.15 | 1.25 | min | +72.0% | low |
| Min Liquidity ($M) | 9.90 | 5.50 | min | +80.0% | low |
| Max Capex ($M) | 6.60 | 11.00 | max | +40.0% | low |
Capital Structure — Tranche by Tranche
| Tranche | Balance ($M) | Rate Type | Spread (bps) | All-In Rate | Maturity | Covenant Type |
|---|---|---|---|---|---|---|
| Revolver ($75M commit, $12M drawn) | $11.00 | SOFR+400 | 400 | 8.45% | 2030 | maintenance |
| First-Lien Term Loan | $170.50 | SOFR+475 | 475 | 9.20% | 2031 | maintenance |
| Second-Lien Term Loan | $60.50 | SOFR+825 | 825 | 12.70% | 2032 | incurrence |
| Mezzanine (PIK toggle) | $22.00 | Fixed 12% cash + 3% PIK | — | 15.00% | 2033 | incurrence |
| Seller Note | $11.00 | Fixed 8% | — | 8.00% | 2030 | incurrence |
EBITDA Stress Scenarios — Covenant Impact
| Scenario | EBITDA Delta | Projected EBITDA ($M) | Projected Leverage | Status | Headroom |
|---|---|---|---|---|---|
| Base Case (no shock) | +0.0% | $55.00 | 5.00x | in compliance | +20.0% |
| Mild Miss (-5% EBITDA) | -5.0% | $52.25 | 5.26x | in compliance | +15.8% |
| Moderate Miss (-12% EBITDA) | -12.0% | $48.40 | 5.68x | in compliance | +9.1% |
| Severe Miss (-20% EBITDA) | -20.0% | $44.00 | 6.25x | tight / monitoring | +0.0% |
| Downside (-30% EBITDA) | -30.0% | $38.50 | 7.14x | material breach | -14.3% |
Cure Rights Available
| Cure Right | Equity Needed ($M) | Mechanism | Time (days) | Rate Penalty |
|---|---|---|---|---|
| Leverage Cure (equity contribution) | $13.75 | LP pro-rata equity injection | 30 | 0bps |
| EBITDA Cure (retroactive add-back) | $4.40 | Sponsor equity added to EBITDA | 45 | 0bps |
| Liquidity Cure | $6.60 | Cash equity to bolster balance sheet | 20 | 0bps |
| Rate Reset (if breach) | $0.00 | Spread increases +200bps until compliance | 0 | 200bps |
| Amend & Extend (negotiated) | $2.75 | Amendment fee + equity as needed | 60 | 100bps |
Debt Amortization Schedule
| Year | Opening ($M) | Mandatory ($M) | Cash Sweep ($M) | Voluntary ($M) | Closing ($M) | Interest ($M) |
|---|---|---|---|---|---|---|
| 2026 | $275.00 | $2.75 | $4.12 | $0.00 | $268.12 | $25.30 |
| 2027 | $268.12 | $2.68 | $4.02 | $0.00 | $261.42 | $24.67 |
| 2028 | $261.42 | $2.61 | $7.84 | $0.00 | $250.96 | $24.05 |
| 2029 | $250.96 | $2.51 | $7.53 | $5.02 | $235.91 | $23.09 |
| 2030 | $235.91 | $2.36 | $7.08 | $4.72 | $221.75 | $21.70 |
| 2031 | $221.75 | $2.22 | $6.65 | $4.44 | $208.45 | $20.40 |
| 2032 | $208.45 | $2.08 | $6.25 | $4.17 | $195.94 | $19.18 |
| 2033 | $195.94 | $1.96 | $5.88 | $3.92 | $184.18 | $18.03 |
Covenant Thesis: Platform at 5.00x leverage on $55.0M TTM EBITDA; $275.0M aggregate debt at 10.36% blended rate.
Covenant posture is monitoring; next test 2026-06-30.
Stress test shows breach threshold at roughly -17% EBITDA miss. Cure rights of ~$13.8M equity contribution available from LP pro-rata,
providing meaningful buffer against technical breach. Cash sweep mechanism expected to pay down $49.4M over life of facility — material delevering path.