[berberous]

The definition of "EBITDA" keeps getting looser each year, so the true leverage is likely somewhat higher than you'd expect by just looking at the max leverage a credit agreement permits.

Also, most leveraged loans (i.e. institutional term B loans) require de minimis principal repayment in addition to interest (1%/year).

[StudentStuff]

Any chance you have a comparison of EBITDA over the years? You've piqued my interest :P

[berberous]

Here's an article that describes the issue: https://www.reuters.com/article/us-ebitda-loans/adjusted-ebi...

This article describes some of the addbacks in more detail (scroll down to the section entitled "EBITDA add-backs and other adjustments"): https://www.hoganlovells.com/publications/the-evolving-ficti...

[XnoiVeX]

That's an eye opener for me. Thanks!