Analyzing investment in senior unsecured debt given Debt/EBITDA at each debt level for both companies
Analyzing investment in senior unsecured debt given Debt/EBITDA at each debt level for both companies
Here is what I'm looking at: Company A Company B
Gross Leverage (Debt/EBITDA)
Company A Company B
Secured Debt Leverage 0.69x 1.08x
(Secured Debt/EBITDA)
Senior Unsecured Debt Leverage 1.60x 3.96x
(Secured + Senior Unsecured Debt)/EBITDA
Total Leverage 2.42x 4.87x
If I want to make an investment in Company A's Senior unsecured debt, how would I first decide which company is most creditworthy?