Hi guys,
I've been trying to practice my LBO modelling with Street of Walls' sample LBO case study practice and my cash sweep is not working properly. I don't have any formal IBD experience and have taught myself to model; I can build a basic integrated financial model quite comfortably but have limited experience with revolvers and cash sweep.
The problem is that I have to maintain a $5M minimum cash balance. I built a cash sweep that did the job, but I forgot to include in the model that the revolver gets priority in the cash sweep. Now that I've tried to model that in, the cash messes up and I can't maintain the minimum cash balance. I've looked over the model a few times and am not sure where the error lies.
Could someone please take a look at my model for me and provide some feedback that could help me? I will be happy to PM you a link to my model.
Thank you very much!
Bump.
Should be pretty easy to set a min equal to min cash cell
Back out your minimum cash balance so that you would require a draw on the revolver if you ever dropped below that. For example, I am sure you have a few lines in there that you use to calculate the call on revolver, well in there make a line for minimum cash balance and make it -15. link that to your assumption so you can change it in the future. The revolver should now balance the minimum cash! yippee!
Cash Sweep (Originally Posted: 10/18/2017)
Which is better for a buyer acquiring another company a 65 % cash sweep or no LIBOR floor but low bp situation?
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