Modeling Test
I'm working on a modeling test and it says this: Financing fees of $3 million paid at close. Additional transaction fees and expenses of $2 million also paid at close. All fees will be funded by additional draw on the revolver at close. There is also the assumption that the revolver is 1.0x EBITDA (LIBOR + 400bps). LTM EBITDA is $23M.
Does this mean the revolver limit is 1.0x EBITDA and the beginning balance is $5m? Would the beginning balance be $23M?
Also - separately, if it is a cash free, debt free deal - would the Equity Value in the uses side just be the LTM EBITDA x the Entry Multiple??
Thanks!!
Maxime mollitia consequuntur eligendi fugit omnis placeat aliquam. Eveniet aut eum voluptatum deleniti qui aut. Distinctio soluta et qui provident dolores quia. Ex nulla omnis rerum aut. Quaerat et ex cum dicta.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...