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A group of managers going to offer to purchase the company they manage with the help of a financial sponsor. The company currently has a
A group of managers going to offer to purchase the company they manage with the help of a financial sponsor. The company currently has a cash balance of $ million and requires a minimum cash balance of $ million. The sponsor intends to finance this transaction by issuing various debt securities including $ million in senior secured debt, $ million in subordinated debt. The company is arranging for a $ million revolving line of credit. The sponsor plans to use $ million from the revolver in order to finance the transaction. The sponsor also intends to finance the transaction by investing its own equity, and having management invest $ million in equity from rollover equity. The financial sponsor will put in enough equity to fund the remainder. In addition to redeeming the existing stock, management and its financial sponsor will also redeem all outstanding debt par value of $ million and preferred stock par value of $ million at its par value. Transaction costs are based on equity Fill in all blank cells highlighted yellow.
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