SRAM LLC repaid about $90 million of debt from free cash flow in 2018, and we forecast that the company will further reduce leverage to the mid-2x area in 2019 from both EBITDA expansion and continued debt repayment. But we believe the company's owners may consider a debt-funded distribution that raises leverage above this base-case forecast. If SRAM pays a distribution that raises leverage closer to our 4x upgrade threshold, there would be less cushion to accommodate potential leveraging acquisitions and significant anticipated periodic operating volatility. As a result, an upgrade is unlikely. The company operates in the high-end bicycle component manufacturing industry, which requires consistent innovation to develop new products and maintain market share. As a result, half of
