Module VI· Debt Schedule MechanicsAdvanced
Question

How do you integrate leverage covenants into the debt schedule?

Answer

Calculate covenant EBITDA, net debt or senior debt, and leverage ratios each period. Compare them with covenant thresholds and show headroom. Use definitions from the loan agreement, not generic model EBITDA. Include add-backs, lease treatment, cash netting, and cure rights if applicable. Flag breaches with checks.