Adjustments to EBITDA to account for a large range of items including: non-recurring or extraordinary expenses, expected cost savings as a result of measures already implemented or expected to be implemented in the future, pro forma adjustments for synergies or as a result of business combinations, etc.

The Adjustments to EBITDA are a point of focus for both lenders and borrowers, and often subject to multiple discussions and negotiations, as the resulting Adjusted EBITDA would then be used as a basis for the calculation of covenants and other metrics governed by the Credit Agreement or bond Indenture.

If you would like to learn more about the financing process, please see our Termgrid Primers – Series 1: The Debt Financing Process.