Security & Collateral · glossary
Earnings before interest, tax, depreciation and amortisation: the profit the trade makes before the cost of borrowing. The interest cover test compares it with the interest paid. The Company's EBITDA for 2027 was £3,600,000. Chapter 8 · see Interest cover
Explained in Chapter 8, The Breach, the Waiver and the Blocked Account, of Security & Collateral.
The main page for this term is EBITDA, in Finance Deals & Syndicated Lending.
The profit used is EBITDA: earnings before interest, tax, depreciation and amortisation. It shows the cash the trade produces before the cost of borrowing. Interest cover was five times when the loan was made.Read Chapter 8, The Breach, the Waiver and the Blocked Account →
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