Leverage-based ceilings
For Debt / EBITDA ≤ L, maximum gross debt is L × TTM EBITDA. For Net Debt / EBITDA ≤ L, maximum gross debt is L × TTM EBITDA + current cash. Cash stays fixed: additional borrowing is assumed to be deployed, not left as an offsetting cash balance. Positive EBITDA is required. A limit that is infeasible even with zero gross debt is reported as blocked rather than as negative supported debt.
Coverage-based ceilings
For an earnings/interest minimum, allowed annual expense interest is TTM EBITDA or EBIT divided by the threshold. Maximum gross debt = current gross debt + (allowed interest − current expense interest) ÷ marginal annual rate. Enter the marginal rate as % p.a.; 5 means 5%, and the formula uses 0.05. The rate must be greater than zero and at most 100%. Existing interest is otherwise fixed.
Minimum Cash is a gate
Linked Minimum Cash reads the same setting as Financing and uses ≥. Meeting it makes the condition nonbinding; falling below it blocks additional capacity. The condition alone never determines a finite debt ceiling. It does not assume that more debt creates extra cash or solve the liquidity shortfall. Activate Financing to supply the linked source, then use at least one meaningful leverage or coverage ceiling when a maximum debt amount is needed.
Identify the binding rule and time
The lowest applicable finite ceiling binds. Additional Debt Capacity = max(0, maximum gross debt − current gross debt); required paydown = max(0, current gross debt − ceiling). A blocked rule blocks capacity; an applicable unavailable rule prevents a reliable combined ceiling. Forecast minimum capacity uses evaluable observations and reports how many were unavailable. A covenant used for capacity participates during its effective dates, independently of formal test frequency.
Combine two constraints
Suppose TTM EBITDA is 100, cash is 20 and current gross debt is 250. A 3.0× gross leverage limit supports 300; a 2.5× net leverage limit supports 270. The second binds, leaving 20 additional debt capacity. With gross debt of 280, the same ceiling instead implies 10 of paydown and zero additional capacity. Neither result changes facility commitments or executes the borrowing/paydown.
Recognize the approximation
Coverage uses a linear marginal-interest assumption, not repricing of every loan. If paying down all gross debt at that rate still leaves too much interest, capacity is blocked. Cash flow / Debt service is monitored as a covenant but has no implemented debt-ceiling formula. Capacity is not a credit rating, lender underwriting result or guaranteed maximum borrowing. Use Financing for actual configured availability.
Documents the current implemented behavior. Numerical examples are synthetic, not market assumptions.