Respuesta :
It's a de-leveraging transaction because pro-forma the company will have a lower total debt to EBITDA ratio.
On a firm basis, it has a neutral impact, but it is de-leveraging on a senior debt basis.
What is EBITDA leverage?
The debt to EBITDA ratio is a leverage metric that measures the amount of income that is available to pay down debt before covering interest, taxes, depreciation, and amortization expenses.
Is a higher or lower EBITDA better?
The total EBITDA margin will be around 10%. The EBITDA margin shows how much operating expenses are eating into a company's gross profit. In the end, the higher the EBITDA margin, the less risky a company is considered financially.
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