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Every score quotes the sentence in your memo it's based on.

credit-memo · northfield-packagingsample

Downside case

In a downside scenario, we assume EBITDA falls 10% to $63M. Leverage would rise to 5.0x, which is still below the 5.25x maximum leverage covenant.1 Interest coverage would fall to about 2.2x, which is still adequate. …

Structure and terms

…The company can make unlimited restricted payments when total leverage is below 4.0x, and there is a $25M incremental facility. These terms are typical for a sponsor-backed deal of this size.2

59 / 100Needs major workReal grade of the sample memo

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