// definition
Add-back
Contractual EBITDA adjustment
Short definition
An adjustment permitted by a loan agreement that adds specified items, such as expected savings, to the EBITDA used in financial ratios. Eligible categories, caps and time limits depend on the documentation. An add-back creates no cash receipt and does not reduce the debt owed.
risk atlas
Knowledge map
Related analyses
- Private credit’s test of patienceExpected savings and the contractual calculation of leverage.
Primary sources
- Proskauer, Private Credit Prepares for the Next CycleSeptember 18, 2019 contractual analysis: EBITDA adjustments and synergy caps; no current frequency inferred.