What do they mean and why should investors care?
A common question among investors, credit managers and consultants is: “Where are we in the credit cycle?” While credit markets will ebb and flow, most believe we are presently at the more competitive end of the spectrum. And in a competitive market, pressure on financing structures and documentation can be expected. In our view, a key challenge is the current shift in magnitude and type of EBITDA addbacks that are being used to justify higher debt levels and valuations.
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