Table:
| Years ended August 31, | 2020 Guidelines(1) | 2019 | 2018 |
| --- | --- | --- | --- |
| Average cost of indebtedness(2) | 4.4% | 4.4% | 4.4% |
| Fixed rate indebtedness(3) | 78% | 78% | 72% |
| Average term: long-term debt (in years) | 3.9 | 4.9 | 5.7 |
| Net indebtedness(4) / adjusted EBITDA(5) | 2.3 | 2.6 | 3.8 |
| Adjusted EBITDA / financial expense(5) | N/A (6) | 6.3 | 5.4 |
Paragraphs:
8.1 CAPITAL STRUCTURE
The table below summarizes debt-related financial ratios over the last two fiscal years and the fiscal 2020 guidelines:
(1) Based on mid-range guidelines. (2) Excludes amortization of deferred transaction costs and commitment fees but includes the impact of interest rate swaps. Potential variations in the US LIBOR rates in fiscal 2020 have not been considered. (3) Taking into consideration the interest rate swaps in effect at the end of each fiscal year. (4) Net indebtedness is defined as the aggregate of bank indebtedness, balance due on business combinations and principal on long-term debt, less cash and cash equivalents. (5) Adjusted EBITDA and financial expense for fiscal year 2018 include only eight months of MetroCast operations. (6) Specific guidance on interest coverage cannot be provided given that financial expense guidance is not provided.
In fiscal 2019, the financial leverage ratio relating to net indebtedness over adjusted EBITDA has declined as a result of the sale of Cogeco Peer 1 on April 30, 2019 for a net cash consideration of $720 million and to a lesser extent growing adjusted EBITDA and a reduction in net indebtedness from generated free cash flow. In fiscal 2020, prior to the adoption of IFRS 16 Leases, the financial leverage ratio relating to net indebtedness over adjusted EBITDA should continue to decline as a result of growing adjusted EBITDA and a projected reduction in net indebtedness from generated free cash flow.
Question:
What is the company's projection for EBITDA?
Answer: EBITDA should continue to decline as a result of growing adjusted EBITDA and a projected reduction in net indebtedness from generated free cash flow.