Calculate the total pro forma liabilities (classify noncontrolling interests as liabilities) You may assume assume only 75 of the maximum debt commitment is used by the new Buyers of the Company The maximum debt commitment is $12 75 billion Note that Noncontrolling Interests are bought out during the transaction Relevant Deal Data All data provided in question 1, plus Notes Diluted share count 1,690,000,000 Offer price per share $13 20 Equity purchase price $22,308,000,000 00 LTM EBITDA at LBO date 3,500,000,000 Balance sheet cash 7,700,000,000 Assume all balance sheet cash will be avaialbe to help fund the purchase Oldco Debt 1,400,000,000 All of the company's $1 4 billion in debt would need to be refinanced in the deal Noncontrolling interest 25,000,000 Bell plans to buy all noncontrolling interests at their $25 million book value as part of the acquisition Transaction fees 3 0 The new company would incur transaction fees amounting to3 of the total equity purchase price Equity rollover of diluted share count 13 4 To fund the LBO, John Bell will rollover his entire equity stake in Dwyer Labs, which amounts to 13 4 of the diluted share count Equity John Bell 1,400,000,000 To fund the LBO, John Bell also will contribute $1 4 billion in cash Equity Green river 800,000,000 The other equity owner in the new private company will be Green River, a private equity firm Green River has committed to $800m in equity capital Maximum debt commitments from lenders 12,750,000,000 After meeting with lenders, John Bell and Green River have received $12 75 billion in debt commitments from lenders If there is a funding deficit, Green River has agreed to fill the gap over and above the $800 million in equity they have already agreed to If there is a funding surplus, the newco will take less than the $12 75 billion available from lenders Financing fees 100,000,000 Fees on new borrowing (For purposes of this exam, assume financing fees are capitalized as an intangible asset per pre 2015 accounting rules)

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Calculate the total pro forma liabilities (classify noncontrolling interests as liabilities). You may assume assume only 75% of the maximum debt commitment is used by

Calculate the total pro forma liabilities (classify noncontrolling interests as liabilities).

You may assume assume only 75% of the maximum debt commitment is used by the new Buyers of the Company.

The maximum debt commitment is $12.75 billion. Note that Noncontrolling Interests are bought out during the transaction.

Relevant Deal Data
All data provided in question 1, plus:
		Notes

Diluted share count	1,690,000,000
Offer price per share	$13.20
Equity purchase price	$22,308,000,000.00
LTM EBITDA at LBO date	3,500,000,000
Balance sheet cash	7,700,000,000	Assume all balance sheet cash will be avaialbe to help fund the purchase.
Oldco Debt	1,400,000,000	All of the company's $1.4 billion in debtwould need to be refinanced in the deal.
Noncontrolling interest	25,000,000	Bell plans to buy all noncontrolling interests at their$25 millionbook value as part of the acquisition.
Transaction fees	3.0%	The new company would incur transaction fees amounting to3%of the total equity purchase price

Equity rollover - % of diluted share count	13.4%	To fund the LBO, John Bell will rollover his entire equity stake in Dwyer Labs, which amounts to 13.4% of the diluted share count.
Equity - John Bell	1,400,000,000	To fund the LBO, John Bell also will contribute $1.4 billion in cash.
Equity - Green river	800,000,000	The other equity owner in the new private company will be Green River, a private equity firm. Green River has committed to $800m in equity capital.
Maximum debt commitments from lenders	12,750,000,000	After meeting with lenders, John Bell and Green River have received $12.75 billion in debt commitments from lenders. If there is a funding deficit, Green River has agreed to fill the gap over and above the $800 million in equity they have already agreed to. If there is a funding surplus, the newco will take less than the $12.75 billion available from lenders.
Financing fees	100,000,000	Fees on new borrowing. (For purposes of this exam, assume financing fees are capitalized as an intangible asset per pre-2015 accounting rules).