Modeling LBO
Hi Guys, had a question. I'm comfortable with modeling 3 statements, understanding linkages, but now with an LBO, we are basically wiping off the TargetCo's old debt and replacing it with the Financial Sponsor's debt they got (Senior Notes, TLA/B, Sub Notes, Mezz, etc.). My question is, how do I model this out? Lets say a company has 150 of short term borrowings in and 300 of Long Term Borrowings in 2024A (the last historical year), what happens in 2025E? I have to use my debt schedule and insert what where? What happens to short term debt? Is it just 0'd, with all my Debt Tranches total sum per year going into LTD for 2025E? Any guidance/resources would be very helpful. Thanks!
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