Financials
Pareto Industries — 2024 Senior Credit Agreement
Income statement, cash flows, and balance sheet from the borrower's most recent 10-K plus most recent 10-Q. Derived KPIs feed module capacity calculations.
Statements
| Line | FY2022 | FY2023 | FY2024 | TTM Q1-25 |
|---|---|---|---|---|
Revenue | 4,925 | 4,180 | 3,920 | 3,840 |
Cost of goods sold | (3,950) | (3,490) | (3,120) | (3,010) |
Gross profit | 975 | 690 | 800 | 830 |
SG&A | (485) | (460) | (445) | (442) |
R&D | (78) | (74) | (72) | (70) |
Operating income | 412 | 156 | 283 | 318 |
Interest expense | (145) | (178) | (212) | (224) |
Other (gain)/loss | (28) | 12 | (5) | (8) |
Pre-tax income | 239 | (10) | 76 | 102 |
Tax expense | (58) | 4 | (22) | (28) |
Net income | 181 | (6) | 54 | 74 |
Add: D&A Add-back | 245 | 252 | 258 | 260 |
Add: Stock-based comp Add-back | 38 | 41 | 44 | 45 |
Add: Restructuring & one-time Add-back | 72 | 95 | 110 | 102 |
Consolidated EBITDA Per agreement §1.01 definition | 801 | 593 | 753 | 825 |
Figures in $M, except per-share · negatives shown in parentheses
Derived KPIsComputed deterministically from line items
Consolidated EBITDA (TTM)
$825M
The denominator for every leverage ratio in the agreement.
Net income + Tax + Interest + D&A + SBC + Restructuring
Feeds module →Senior Secured Leverage Ratio
1.91×
Pro forma SSLR — well below the 4.25× incremental cap.
(TLB + Sr Sec Notes) / TTM EBITDA = $1,578 / $825
Feeds module →Total Net Leverage
2.83×
Total debt less cash, divided by TTM EBITDA.
($2,533 − $200) / $825
Interest Coverage Ratio
3.68×
Comfortable headroom against the 2.0× covenant floor.
TTM EBITDA / Interest expense = $825 / $224
Excess Cash Flow
$53M
TTM ECF — small at current leverage; ECF percentage is 25%.
CFO − Capex − Scheduled amort − Permitted RP cash
Feeds module →50% CNI starter
$413M
Builder-basket starter component for Restricted Payments.
0.50 × cumulative CNI from Closing Date
Feeds module →
Resolved basketsHow financials → covenant capacity
Module
Incremental debt
Capacity
$1,325M
Derivation
Fixed floor $500M + 100% of TTM EBITDA $825M = $1,325M, with unlimited ratio headroom while SSLR ≤ 4.25× (currently 1.91×).
Module
Restricted payments
Capacity
$617M
Derivation
Available Amount = 50% × CNI ($413M) + Retained ECF ($42M) + Equity NCP ($162M).
Module
Investments
Capacity
Effectively uncapped
Derivation
Restricted-Sub basket and Unrestricted-Sub basket both uncapped; bounded only by the borrower's asset base — currently $1.78B in goodwill/intangibles is the principal asset class at risk.
Module
Prepayment — ECF sweep
Capacity
≤ 25% of ECF
Derivation
Sweep at 25% because pro-forma SSLR (1.91×) sits in the 3.5–4.0× band's stepdown — TTM ECF $53M × 25% = $13M expected paydown.
Module
Sale-leaseback
Capacity
$200M+ uncapped
Derivation
$200M general basket plus uncapped ratio test — substantial PP&E ($2.09B) provides ample asset base.
Where to go next
Term sheet review
See how the proposed transaction uses the capacity these financials produce.
Scenario modeler
Map the financials → capacity → market price → P&L on a specific holder profile.
Capability map
All 34 modules with what's resolved and what's pending.
Diligence report
Single-flow printable view including these financials.
Phase 2 mockup · stylized figures · OCR + line-item normalization ships in Phase 3+