M&A Financing & Debt Advisory

DSCR & LBO Leverage Stresstester

Model acquisition financing and debt service capacity (Senior Term Loans, Mezzanine, Unitranche). Quantify CFADS waterfalls, DSCR covenant headroom, breakeven EBITDA buffers, and interest rate hike sensitivities.

Year 1 DSCR
0.74x
Covenant: ≥ 1.25x
Total Debt (Leverage)
4.25x
= 19.125.000 € debt volume
Covenant Headroom
-40.8%
Buffer over minimum DSCR
Max EBITDA Contraction
-0 %
Until DSCR = 1.00x (Breakeven)
Financing Parameters
4.50 Mio. €
3.50x EBITDA
= 15.750.000 € Senior Loan
0.75x EBITDA
= 3.375.000 € Mezzanine
5.50 % p.a.
9.50 % p.a.
650 k€
1.25x

Debt Service Capacity (Year 1)

CFADS Available
2.545.000 €
Post capex & taxes
Total Debt Service
3.436.875 €
2.250.000 € repay + 1.186.875 € int
DSCR Coverage
0.74x
Covenant RISK

Structuring Assessment for PE & Corporate Borrowers

Debt Capacity & Senior Sizing

With senior leverage of 3.50x EBITDA and a 7-year linear schedule, annual principal repayment is 2,250,000 €. Minimum DSCR across the 7-year term is 0.74x.

Breakeven & Downside Buffer

The borrower can absorb an EBITDA decline of up to 0% (to a breakeven level of 6,052,679 €) before operational cashflow fails to cover debt service.

Structure Your Acquisition Debt

AME Straticon advises private equity funds, family offices, and corporate borrowers on structuring debt packages, unitranche tenders, and covenant negotiations.

AME Module st--Strategie
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