senior-secured leveraged lending question
For those that work in commercial banking...
the FDIC / OCC sets guidelines for commercial banks to flag certain borrowers as "Higher-Risk" based on leverage. It's supposed to be if senior leverage is >3x or total leverage is >4x. I just started at a new bank, and it seems this institution has an interesting way of interpreting the above criteria.
At your bank, would a borrower with a $250MM Term Loan (that's their only debt) with $70MM in Adj. EBITDA be considered a "Leveraged Loan" per the OCC guidelines?
Yes from what I recall.
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