Search Results

SORT BY: PREVIOUS / NEXT
Keywords:borrower performance 

Working Paper
EBITDA Add-backs in Debt Contracting: A Step Too Far?

Financial covenants in syndicated loan agreements often rely on definitions of EBITDA that deviate from the GAAP definition. We document the increased usage of non-GAAP addbacks toEBITDA in recent times. Using the 2013 Interagency Guidance on Leveraged Lending, which we argue led to an exogenous increase in non-GAAP EBITDA addbacks, we show that these addbacksincrease the likelihood of loan delinquency and default, and also increase the likelihood of the borrower experiencing a ratings downgrade. Greater use of non-GAAP EBITDA addbacks also makes it more likely that lead arrangers lower their ...
Working Papers , Paper 2022-029

FILTER BY Bank

FILTER BY Series

FILTER BY Content Type

FILTER BY Jel Classification

G21 1 items

G23 1 items

G28 1 items

G32 1 items

G34 1 items

FILTER BY Keywords

PREVIOUS / NEXT