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.

Capital at risk. No FSCS cover. See Risk Statement.