BWW's Historical Income Statement (in millions of dollars) Debt Schedule (in millions of dollars) Notes: The deal was expected to close on December 30, 2017. Due to a change of control provisions in the covenants of the existing debt, the sponsor was required to pay off the existing debt prior to the closing of the deal. The revolver was packaged with the Senior Secured Term Loan B and was required to be repaid in full before it could be drawn again. Term Loan B (ratings Moody's B3/S\&P B) was a floating rate loan due in 2025 that paid interent annually on the prior year's ending debt balance, based on London Inter-bank Offered Pite (I.1BOR) (assumed constant) plus x spread The loan required amortization of 1% of the initial principal amount of $1,575 million to be repaid each year. The senior unsecured notes (ratungs Moody's Cu3/S\&P CCC+) were high-yield notes that paid fixed-rate interest of 7.3% per annum on the prior year' ending debt balance, were duc in 3026 , and his bulter amortization. Carb tlow in excess of openting and financial obligations would be used to, in order of prionity, pay the required amortization on the Senior Secured Term Loan B and repay the ievolves Cash in excess of those obligations would be used to further reduce the Project Questions (include your answers in the Excel sheet): 1) Discuss and explain your downside assumptions. It is probably easiest to discuss each assumption in Excel by each line item in the assumptions tab. 2) Do you foresee a situation where Inspire Bands could default on the BWW debt? What is the lowest implied rating during the forecast period for each ratio in your downside scenario? BWW's Historical Income Statement (in millions of dollars) Debt Schedule (in millions of dollars) Notes: The deal was expected to close on December 30, 2017. Due to a change of control provisions in the covenants of the existing debt, the sponsor was required to pay off the existing debt prior to the closing of the deal. The revolver was packaged with the Senior Secured Term Loan B and was required to be repaid in full before it could be drawn again. Term Loan B (ratings Moody's B3/S\&P B) was a floating rate loan due in 2025 that paid interent annually on the prior year's ending debt balance, based on London Inter-bank Offered Pite (I.1BOR) (assumed constant) plus x spread The loan required amortization of 1% of the initial principal amount of $1,575 million to be repaid each year. The senior unsecured notes (ratungs Moody's Cu3/S\&P CCC+) were high-yield notes that paid fixed-rate interest of 7.3% per annum on the prior year' ending debt balance, were duc in 3026 , and his bulter amortization. Carb tlow in excess of openting and financial obligations would be used to, in order of prionity, pay the required amortization on the Senior Secured Term Loan B and repay the ievolves Cash in excess of those obligations would be used to further reduce the Project Questions (include your answers in the Excel sheet): 1) Discuss and explain your downside assumptions. It is probably easiest to discuss each assumption in Excel by each line item in the assumptions tab. 2) Do you foresee a situation where Inspire Bands could default on the BWW debt? What is the lowest implied rating during the forecast period for each ratio in your downside scenario
