I'm being asked to do an/private equity model scenario. I'm a pretty good modeler/ person, but some terms are not familiar to me.
1. What is Base (as in Base + %)? I see+ % (I can look up 1 year LIBOR obviously), but what is base %? Is this supposed to be given to me by the financing institution/bank ?
2. There are separate financing facilities like M&E, Capex Facility, Revolver (A/R). I'm supposed to just model each borrowing base against the asset, I guess. Any tricks or points on this matter? Doesn't seem that complicated.
3. If you do private equity/lbo analysis, how often do you use regression analysis in forecasting the income statement?