14 questions reported in Golub Capital interviews, organised by the group that asks them. Every question carries a model answer and graded feedback on your own attempt.
Questions
Easy · Medium
Hard
Model builds
Built in the spreadsheet grid
Leverage capacity, documentation, downside cases and portfolio construction. 10 questions
Tests whether a candidate understands floating-rate loan sensitivity.
A company has $80m of floating-rate debt at SOFR + 550bp and $20m of EBITDA. SOFR rises from 3% to 5%. Calculate cash interest and EBITDA-to-interest coverage before and after the move.
A first-round question testing whether a candidate can read a basic term sheet.
A lender offers a borrower a five-year $100m first-lien term loan at SOFR + 600bp. Explain the main economics and protections in plain English.
Tests whether candidates treat a maintenance covenant as an early-warning tool rather than a number to maximise.
A company has $50m of net debt, a 5.5x maximum net-leverage covenant and $12m of EBITDA. It expects EBITDA to fall 15%. Is it in breach, and what would you investigate before agreeing to a waiver?
A direct-lending credit-agreement review where a lender must connect covenant arithmetic to the provisions that can erode it.
You are the underwriting associate reviewing a sponsor-backed unitranche amendment. Calculate headroom using lender-defined EBITDA, test the proposed add-on, identify the document leakage, and prepare…
A direct-lending underwriting case testing liquidity sequencing, collateral quality and lender protections.
You are the underwriting associate on a unitranche loan to a distributor. The company misses plan after close and requests an amendment. Evaluate each update and prepare a credit-committee…
A credit-agreement lab combining covenant arithmetic, document leakage and practical markups.
You are reviewing the first credit-agreement draft for a sponsor-backed borrower. Calculate covenant headroom, find the provisions that can move value away, and send the essential markup.
A direct-lending associate review of a liquidity model and draft credit approval memorandum.
You are reviewing a unitranche underwriting for a healthcare-services company one hour before credit committee. Find the material flaws in the liquidity case, decide what the team must repair, and…
A direct-lending scenario lab testing leverage capacity, interest coverage and underwriting discipline for a sponsor add-on.
A sponsor requests incremental unitranche debt to fund an add-on. Calculate the headroom, test the pro forma interest burden, and decide whether the lender should fund the request as proposed.
A direct-lending data-room exercise built around EBITDA quality, liquidity and documentation.
You have 45 minutes before the screening committee for a $275m unitranche. Review the extracts, choose the next diligence action, and draft a credit recommendation.
A direct-lending analyst screening a sponsor-backed unitranche before credit committee.
You are reviewing a sponsor's data room for a $240m unitranche to finance a healthcare-services acquisition. Work through the materials as they arrive, make the required decisions, and write the…
Blended return construction, PIK, warrants and intercreditor terms. 3 questions
Mezzanine teams use this arithmetic to check whether reported leverage captures debt that is compounding rather than being paid in cash.
A borrower has $180m of first-lien debt and a $60m mezzanine note with a 10% annual PIK coupon. EBITDA is $40m and does not change. What are total debt and total leverage after one year, assuming no…
A first-round private credit question to separate senior lenders from junior-capital thinkers.
Define mezzanine debt. Where does it sit in the capital structure and why would a sponsor use it?
Tests whether candidates know how junior lenders monitor risk without controlling the company day to day.
What covenants would you want in a mezzanine investment and why?
Structuring for downside, collateral, priming risk and recovery. 1 question
Common in stressed-credit interviews because it tests how lenders create time without giving away rights.
A borrower will breach a leverage covenant next quarter but needs six months to sell a division. What is the difference between a waiver and a forbearance agreement, and which would you prefer as…
Write your answer, get it graded on technical accuracy, completeness and communication, and see exactly which mechanic you missed.
Company tags reflect where a question type is commonly reported in interviews. They are not sourced from, endorsed by, or affiliated with Golub Capital.