Consider the following debt schedule for a leveraged buyout transaction with 6 tranches of new transaction debt and 1 tranche of existing debt: Projected FY16 Units FY14 FY15 FY17 FY18 Debt & Interest Schedule Sources of Funds Beginning Cash Balance Less: Minimum Cash Balance: Plus: Cash Flow Avalable for Debt Repayment: Subtotal Before Revolver: Revolver Borrowing Required: Total Sources of Funds SM SM SM SM SM SM 20.7 115.01 32.7 38.4 15.0 115.0) 41.8 41.3 15.C (15.0) 41.6 416 15.0 (15.0) 37.7 37.7 150 (15.01 35.0 35.0 38.4 41.8 41.6 37.7 35.0 Subtotal Before Revolver. Uses of Funda Mandatory Debt Repayment Existing Debt: Revolver: Term Loan-A: Term Loan - B: Senior Notes Subordinated Notes Mezzanine: Mandatory Repayment Total SM Sw SM SM SM SM SM Prior Year Senior Note balance, less mandatory repayments. 25.4 5.1 25.4 5.1 25.4 5.1 25.4 5.1 5.1 30.4 SM 30.4 30.4 30.4 30.4 30.4 A switch to take into account whether or not PIK is enabled for each tranche of debt. Revolver Borrowing. 7.9 11.4 11.1 7.3 4.6 Optional Debr Kepayment Existing Debt: Revolver: Term Loan- Term Loan- Senior Notes: Subordinated Note: Mezzanine: Optional Repayment Total: SM SM SM SM SM SM SM SM Total Mandatory Repayments + Optional Repayments on Existing Debt, the Revolver, and Term Loans A and B. 7.9 11.4 11.1 7.3 4.6 Click to View Larger Image Which of the following figures would you include DIRECTLY in the formula for Optional Debt Repayment for the Senior Notes in this schedule? Assume that ALL cash flow above (Beginning Cash Balance - Minimum Cash Balance) can be used for optional debt repayment