Test three loan covenants with adjusted EBITDA and show the math

About this exercise

Test the three covenants and output a table with the header Covenant | Calculation | Limit | Status, one row each, with Status exactly Pass or Fail. Use adjusted EBITDA (remove one-time gains). Show the calculation like "21.0 / 6.0 = 3.5x", rounded to one decimal. Then add the exact line: Counsel and Finance confirm the covenant definitions. Plain text, under 110 words.

Common mistakes when you ask AI for this

• Using reported EBITDA. The AI uses 7.0 and shows 3.0x debt to EBITDA. Try: Say: "Use adjusted EBITDA: remove the one-time gain."
• Trusting the draft slide. The AI says all covenants are met. Try: Say: "Calculate each covenant yourself."
• Wrong status at the limit. The AI marks 3.5x as Fail. Try: Say: "At most 3.5x means 3.5x passes."
• Wrong table. The AI adds a conclusion paragraph. Try: Say: "Exactly this header, three rows, then the closing line."
• Markdown. The AI bolds statuses. Try: Say: "Plain text."
• Trusting the AI to count words. AI is bad at counting. Ask for a total word limit and it often lands over it. Try: Cap each part instead, for example: "each line under 15 words."

What a strong prompt includes

• Gives the header
• Adjusted EBITDA
• Shows the working
• Exact statuses
• Closing line

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