Worst, Better, Best: EBITDA Adjustments – The Scope of Projected Synergies

Worst, Better, Best: EBITDA Adjustments - The Scope of Projected Synergies

Shane Burke, Solicitor: Senior Covenant Analyst - Covenant Review

27 March 2026

Download the Full Report to gain insights on:
  • How covenant language stretches the meaning of synergies and reshapes EBITDA calculations.
  • What differentiates aggressive from disciplined approaches across modern bond and loan documentation.
  • Why certain drafting choices can quietly shift negotiating leverage between borrowers and investors.
  • Where investors should focus when assessing credibility behind projected operational improvements.
  • How evolving market precedent influences covenant protection without obvious headline changes.

The Bottom Line™:

Readers frequently seek clearer ways to strengthen covenant provisions. Such questions highlight growing scrutiny around documentation flexibility.

This series examines covenant language across European high yield bonds and leveraged loans. However, it contrasts weaker drafting with approaches offering stronger investor safeguards.

Investors use comparative examples to frame discussions during primary market negotiations. These illustrations help assess how wording choices alter risk allocation.

Meanwhile, the report focuses on how synergies influence adjusted earnings calculations. Attention centers on items permitted within pro forma adjustments.

Ultimately, the analysis reflects how precedent shapes evolving covenant standards. Readers gain context for interpreting protections embedded within modern financing documents.

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