• Email: [email protected]
  • Call us: (303) 318-0115
  • Hours: 7:30 am - 5:30 pm Mon - Thurs; 7 am - 12 pm Fri

debt

Keeping Covenants: Getting debt ratios right

Accurately defining and computing restrictions on indebtedness is critical to assessing a business’s compliance with debt covenant ratios. Many indentures contain covenants that rely on financial accounting numbers, such as a maximum debt-to-EBITDA ratio. For example, an indenture filed by…