LBO technical question

Hi everyone,

I want to have your opinion on a circularity in a model I have encountered:

Let's assume that you organise your LBO modelling with : (1) a refinancing option, (2) a traditional TLB, (3) an M&A acquisition facility and the usual (4) cash sweep.

I am trying to understand how to avoid circularity when: - the refinancing initial paydown calculation looks at both the original balance of the TLB and also the optional repayment (cash sweep) for the year - the cash sweep looks at the TLB beginning balance + the new M&A facility to calculate its value - the M&A facility looks at the amount outstanding post refinancing to see what maximum amount could be drawn.

So we have a refinancing that depends on cash sweep which itself depends on M&A facility, which itself depends on refinancing.

I am struggling to untangle this knot and I would really appreciate your expertise on this.

Thank you!