Corpus Intelligence RCM Diligence — Covenant Stress 2026-04-26 19:41 UTC
RCM Diligence — Covenant Stress
PROVIDENCE HOSPITAL · max breach 100%
🛡️ Public data only — no PHI permitted on this instance.
Working dealPROVIDENCE HOSPITAL·$12.3M EBITDA
Deal MCCovenant StressPayer StressBear CaseReg CalendarFull Pipeline
Covenant Stress Lab
PROVIDENCE HOSPITAL
3 tranches · $350M funded · 3 covenants tested · 500 simulated paths
Entry Leverage
28.36×
worse than 5.50×–7.00× PE healthcare LBO band
Base Rate
5.5%
better than 7.7%–9.4% 2025/2026 LBO median
Max Breach Prob
100%
worse than 10%–25% bank-acceptable band
FAIL
"Net Leverage" covenant crosses 50% breach probability in Y1Q1 — $251.3M median equity cure.
Net Leverage: peak 100% in Y1Q1 (median metric 28.26 vs threshold 7.50) · DSCR: peak 100% in Y1Q1 (median metric 0.30 vs threshold 1.25) · Interest Coverage: peak 100% in Y1Q1 (median metric 0.32 vs threshold 2.25)
Max Breach Prob
100%
vs <10% bank target · <25% acceptable
Earliest 50% Breach
Y1Q1
quarter any covenant first crosses 50% breach probability
Simulated Paths
500
synthetic EBITDA trials
Quarters Tested
24
6-year horizon
Plain-English read: Above PE-bank acceptable ceiling (>50% breach). Lenders typically re-price, tighten, or walk at this level.
25%50%75%DSCR Y1Q1\nBreach prob 100%\nMedian metric 0.30 vs threshold 1.25DSCR Y1Q2\nBreach prob 100%\nMedian metric 0.30 vs threshold 1.25DSCR Y1Q3\nBreach prob 100%\nMedian metric 0.30 vs threshold 1.25DSCR Y1Q4\nBreach prob 100%\nMedian metric 0.30 vs threshold 1.25DSCR Y2Q1\nBreach prob 100%\nMedian metric 0.31 vs threshold 1.25DSCR Y2Q2\nBreach prob 100%\nMedian metric 0.31 vs threshold 1.25DSCR Y2Q3\nBreach prob 100%\nMedian metric 0.32 vs threshold 1.25DSCR Y2Q4\nBreach prob 100%\nMedian metric 0.32 vs threshold 1.25DSCR Y3Q1\nBreach prob 100%\nMedian metric 0.33 vs threshold 1.25DSCR Y3Q2\nBreach prob 100%\nMedian metric 0.33 vs threshold 1.25DSCR Y3Q3\nBreach prob 100%\nMedian metric 0.34 vs threshold 1.25DSCR Y3Q4\nBreach prob 100%\nMedian metric 0.34 vs threshold 1.25DSCR Y4Q1\nBreach prob 100%\nMedian metric 0.35 vs threshold 1.25DSCR Y4Q2\nBreach prob 100%\nMedian metric 0.36 vs threshold 1.25DSCR Y4Q3\nBreach prob 100%\nMedian metric 0.36 vs threshold 1.25DSCR Y4Q4\nBreach prob 100%\nMedian metric 0.37 vs threshold 1.25DSCR Y5Q1\nBreach prob 100%\nMedian metric 0.37 vs threshold 1.25DSCR Y5Q2\nBreach prob 100%\nMedian metric 0.38 vs threshold 1.25DSCR Y5Q3\nBreach prob 100%\nMedian metric 0.39 vs threshold 1.25DSCR Y5Q4\nBreach prob 100%\nMedian metric 0.39 vs threshold 1.25DSCR Y6Q1\nBreach prob 100%\nMedian metric 0.13 vs threshold 1.25DSCR Y6Q2\nBreach prob 100%\nMedian metric 0.08 vs threshold 1.25DSCR Y6Q3\nBreach prob 100%\nMedian metric 0.06 vs threshold 1.25DSCR Y6Q4\nBreach prob 100%\nMedian metric 0.05 vs threshold 1.25Interest Coverage Y1Q1\nBreach prob 100%\nMedian metric 0.32 vs threshold 2.25Interest Coverage Y1Q2\nBreach prob 100%\nMedian metric 0.33 vs threshold 2.25Interest Coverage Y1Q3\nBreach prob 100%\nMedian metric 0.33 vs threshold 2.25Interest Coverage Y1Q4\nBreach prob 100%\nMedian metric 0.33 vs threshold 2.25Interest Coverage Y2Q1\nBreach prob 100%\nMedian metric 0.33 vs threshold 2.25Interest Coverage Y2Q2\nBreach prob 100%\nMedian metric 0.34 vs threshold 2.25Interest Coverage Y2Q3\nBreach prob 100%\nMedian metric 0.34 vs threshold 2.25Interest Coverage Y2Q4\nBreach prob 100%\nMedian metric 0.35 vs threshold 2.25Interest Coverage Y3Q1\nBreach prob 100%\nMedian metric 0.35 vs threshold 2.50Interest Coverage Y3Q2\nBreach prob 100%\nMedian metric 0.36 vs threshold 2.50Interest Coverage Y3Q3\nBreach prob 100%\nMedian metric 0.37 vs threshold 2.50Interest Coverage Y3Q4\nBreach prob 100%\nMedian metric 0.37 vs threshold 2.50Interest Coverage Y4Q1\nBreach prob 100%\nMedian metric 0.38 vs threshold 2.50Interest Coverage Y4Q2\nBreach prob 100%\nMedian metric 0.39 vs threshold 2.50Interest Coverage Y4Q3\nBreach prob 100%\nMedian metric 0.39 vs threshold 2.50Interest Coverage Y4Q4\nBreach prob 100%\nMedian metric 0.40 vs threshold 2.50Interest Coverage Y5Q1\nBreach prob 100%\nMedian metric 0.41 vs threshold 2.50Interest Coverage Y5Q2\nBreach prob 100%\nMedian metric 0.41 vs threshold 2.50Interest Coverage Y5Q3\nBreach prob 100%\nMedian metric 0.42 vs threshold 2.50Interest Coverage Y5Q4\nBreach prob 100%\nMedian metric 0.43 vs threshold 2.50Interest Coverage Y6Q1\nBreach prob 100%\nMedian metric 0.43 vs threshold 2.50Interest Coverage Y6Q2\nBreach prob 100%\nMedian metric 0.47 vs threshold 2.50Interest Coverage Y6Q3\nBreach prob 100%\nMedian metric 0.55 vs threshold 2.50Interest Coverage Y6Q4\nBreach prob 100%\nMedian metric 0.73 vs threshold 2.50Net Leverage Y1Q1\nBreach prob 100%\nMedian metric 28.26 vs threshold 7.50Net Leverage Y1Q2\nBreach prob 100%\nMedian metric 28.20 vs threshold 7.50Net Leverage Y1Q3\nBreach prob 100%\nMedian metric 28.14 vs threshold 7.50Net Leverage Y1Q4\nBreach prob 100%\nMedian metric 28.07 vs threshold 7.50Net Leverage Y2Q1\nBreach prob 100%\nMedian metric 27.59 vs threshold 7.00Net Leverage Y2Q2\nBreach prob 100%\nMedian metric 27.13 vs threshold 7.00Net Leverage Y2Q3\nBreach prob 100%\nMedian metric 26.68 vs threshold 7.00Net Leverage Y2Q4\nBreach prob 100%\nMedian metric 26.24 vs threshold 7.00Net Leverage Y3Q1\nBreach prob 100%\nMedian metric 25.79 vs threshold 6.50Net Leverage Y3Q2\nBreach prob 100%\nMedian metric 25.36 vs threshold 6.50Net Leverage Y3Q3\nBreach prob 100%\nMedian metric 24.94 vs threshold 6.50Net Leverage Y3Q4\nBreach prob 100%\nMedian metric 24.53 vs threshold 6.50Net Leverage Y4Q1\nBreach prob 100%\nMedian metric 24.11 vs threshold 6.00Net Leverage Y4Q2\nBreach prob 100%\nMedian metric 23.71 vs threshold 6.00Net Leverage Y4Q3\nBreach prob 100%\nMedian metric 23.31 vs threshold 6.00Net Leverage Y4Q4\nBreach prob 100%\nMedian metric 22.93 vs threshold 6.00Net Leverage Y5Q1\nBreach prob 100%\nMedian metric 22.54 vs threshold 5.50Net Leverage Y5Q2\nBreach prob 100%\nMedian metric 22.16 vs threshold 5.50Net Leverage Y5Q3\nBreach prob 100%\nMedian metric 21.79 vs threshold 5.50Net Leverage Y5Q4\nBreach prob 100%\nMedian metric 21.43 vs threshold 5.50Net Leverage Y6Q1\nBreach prob 100%\nMedian metric 15.83 vs threshold 5.00Net Leverage Y6Q2\nBreach prob 100%\nMedian metric 10.40 vs threshold 5.00Net Leverage Y6Q3\nBreach prob 57%\nMedian metric 5.13 vs threshold 5.00Net Leverage Y6Q4\nBreach prob 0%\nMedian metric 0.00 vs threshold 5.00DSCRInterest CoverageNet LeverageY1Y2Y3Y4Y5Y6
<10% breach — bank comfortable 10-25% — tight but bankable 25-50% — negotiate cushion ≥50% — re-price or walk
Plain-English read: First covenant to hit 50% breach probability is Net Leverage in Y1Q1.
How to read: Each line is one covenant. Y-axis is probability of breach across simulated EBITDA paths in that quarter; X-axis is quarters from close. Dashed lines mark 25%, 50%, 75% probability thresholds. Hover any dot for the exact metric value. A line rising sharply through 50% is the covenant to negotiate at the LOI — reset, cushion, or step-down deferral.
Y1Q1: $10.30M debt service ($9.52M int, $0.79M amort)Y1Q2: $10.28M debt service ($9.50M int, $0.79M amort)Y1Q3: $10.26M debt service ($9.47M int, $0.79M amort)Y1Q4: $10.24M debt service ($9.45M int, $0.79M amort)Y2Q1: $10.22M debt service ($9.43M int, $0.79M amort)Y2Q2: $10.20M debt service ($9.41M int, $0.79M amort)Y2Q3: $10.18M debt service ($9.39M int, $0.79M amort)Y2Q4: $10.16M debt service ($9.37M int, $0.79M amort)Y3Q1: $10.14M debt service ($9.35M int, $0.79M amort)Y3Q2: $10.12M debt service ($9.33M int, $0.79M amort)Y3Q3: $10.10M debt service ($9.31M int, $0.79M amort)Y3Q4: $10.08M debt service ($9.29M int, $0.79M amort)Y4Q1: $10.06M debt service ($9.27M int, $0.79M amort)Y4Q2: $10.04M debt service ($9.25M int, $0.79M amort)Y4Q3: $10.02M debt service ($9.23M int, $0.79M amort)Y4Q4: $10.00M debt service ($9.21M int, $0.79M amort)Y5Q1: $9.97M debt service ($9.19M int, $0.79M amort)Y5Q2: $9.95M debt service ($9.17M int, $0.79M amort)Y5Q3: $9.93M debt service ($9.15M int, $0.79M amort)Y5Q4: $9.91M debt service ($9.13M int, $0.79M amort)Y6Q1: $92.67M debt service ($9.11M int, $83.56M amort)Y6Q2: $90.39M debt service ($6.83M int, $83.56M amort)Y6Q3: $88.12M debt service ($4.55M int, $83.56M amort)Y6Q4: $85.84M debt service ($2.28M int, $83.56M amort)$92.7M$61.8M$30.9M$0.0MInterestAmortization
Plain-English read: Peak quarterly debt service is $92.67M in Y6Q1 ($370.7M annualized). At a 1.5× DSCR floor, the target needs $556.0M LTM EBITDA in that quarter to stay inside the covenant.
How to read: Each bar is one quarter of debt service. Red is interest on outstanding balance; amber is scheduled amortization. TLB/unitranche bullets concentrate amortization in the final year — that spike is where refinance risk concentrates. Flat interest early = floating-rate base stable; steepening = rate-path stress.
CovenantFirst Cure QMedian CureP75 CureBreach Path %
Net LeverageY1Q1$251.32M$261.23M100% of paths
DSCRY1Q1$0.93M$0.98M100% of paths
Interest CoverageY1Q1$2.03M$2.12M100% of paths
How to read: For leverage covenants the cure equals the debt paydown that drops leverage to threshold; for coverage covenants it's the synthetic EBITDA add allowed by the credit agreement ("yank-the-bank" provision, capped at ~25% of LTM EBITDA). P75 shows the right-tail scenario — the partner should underwrite equity capacity for at least P75.
Green/amber/red cells reflect PE-bank underwriting thresholds — click any column to sort, CSV exports auto-wired.
CovenantPeak Breach %Peak Quarter50% First At25% First AtMedian Cure $Breach Path %Interpretation
DSCR100%Y1Q1Y1Q1Y1Q1$0.9M100%FAIL — renegotiate covenant or walk
Interest Coverage100%Y1Q1Y1Q1Y1Q1$2.0M100%FAIL — renegotiate covenant or walk
Net Leverage100%Y1Q1Y1Q1Y1Q1$251.3M100%FAIL — renegotiate covenant or walk
Capital stack · senior-first
TrancheTypePrincipalTermSpread bpsAmortLien
TLBTLB$227.5M6y+4501% + bulletL1
UnitrancheUNITRANCHE$87.5M6y+6001% + bulletL1
MezzanineMEZZANINE$35.0M6y+950IO + bulletL2
→ Deal MC produced the EBITDA cone that feeds this lab · → Regulatory Calendar produced the overlay applied above · → Exit Timing uses the same leverage path for refinance feasibility.
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