Debtwire Middle-Market – 12/3/2018

Large EBITDA addbacks a feature of the leveraged loan market in 2018


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Source: Xtract Research

The deterioration in loan covenant protections has been well publicized this year, and another area that has drawn attention is EBITDA addbacks, which have gotten larger and more aggressive. Adjusted leverage levels have crept higher in 2018, with 30% of all deals and 53% of LBO deals levered 6x or more. However, larger EBITDA adjustments have pushed leverage even higher on an unadjusted basis.