Total Debt multiple

This is defined as Total Debt (Senior debt plus Subordinated debt)/EBITDA. Credit analysts compare this multiple to the EBITDA multiple that a company is valued at in order to assess the LTV % of Total debt versus the company’s valuation or capitalisation. It is also used to set maintenance covenants which stipulate that if a borrower exceeds the agreed multiples over the life of the loan they will be in breach of their loan agreement.

Investing in wiseAlpha Notes involves risks including potential illiquidity and loss of investment. Our Notes are not deposit based or capital protected and are not covered by the Financial Services Compensation Scheme.The interest rate on our products is not comparable to that of a bank savings account. See Risk Statement.

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