Debt Headroom
Short definition
Debt headroom is how much more debt can still be drawn inside the current pack and cash capacity. It is the tightest of undrawn limit, the covenant cap and the CFADS/DSCR cap.
Detailed explanation
The three caps often diverge: a signed line that cannot be drawn because of covenants, an amount that is drawable but that CFADS cannot service, and an amount that is serviceable but fails collateral. Headroom is the tightest.
M&A and dividends must fit in this gap. Reading headroom as “the line is empty” ignores the covenant and cash caps.
Why it matters for the CFO
Growth and acquisition financing hang on this gap. Tight headroom means equity or an asset sale — not another loan.
How it is calculated
Borç marjı ≈ min(Çekilebilir limit, Covenant tavanına kalan borç, CFADS/hedef DSCR bakiyesi)
Variables in the formula
- Debt headroom: Still-drawable / within-covenant debt gap
How to read it
Headroom / EBITDA shows another turn of leverage. There is no universal “enough”; the stress scenario sets it.
Numerical example
RCF undrawn 80 mn TL, 50 mn TL to the leverage cap, 40 mn TL to the DSCR cap → debt headroom = 40 mn TL (tightest).
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Definitions are educational. They are not investment, credit or tax advice.