how is the LBO price arrived upon in page 4, how are various % debt and equity found? IIM ranchi seagate lbo analysis

Histo X AQR Seag X W Seag X M Sent X The X Hon X G debt X G chec X G slide X Fash X G hert X M Inbo X + X C a mail.google.com/mail/u/2/#sent? projector=1 . . . The buyout consisted of a two-staged transaction including a leveraged buyout of the disk drive = M Gmail operations and a tax-free stock swap with VERITAS. This option can help Seagate to address its low stock price and offload its VERITAS shares without undergoing significant tax liability ?) CHRIST Compose 5 Analysis and Identification of the Right Alternative 181 31 We believe the proposed solution of a LBO by Silver Lake followed by the share swap agreement with VERITAS is the best possible solution for Seagate to increase its stock price. 3:49 AM Inbox 933 5.1 Capital Structure for the LBO Starred Rating AAA AA A 3BB BB B CCC Debt as % of Market Snoozed Cap 3.7% 9.2% 16.4% 30.4% 47.5% 59.3% 74.3% Sep 24 % Debt 3.6% 8.4% 14. 1% 23.3% 32.2% 37.2% 42.6% Sent % Equity 96.4% 91.6% 85.9% 76.7% 67.8% 62.8% 57.4% Drafts 55 Sep 19 + LBO Price 1180 More Equity 944 JOSEPH ROSH Debt 236 Sep 17 ARETI KRISHNA 1828643 According to the estimates from S&P, Debt as % of total capital comes around to be 23.3% for BBB Yeah bro Rated firms. However considering the uncertain demand, very short product life-cycle for Disk drive RAKSHA S VASHISHTA 18281 business, we believe that it is considerably riskier business as compared to a normal business. We You: hi therefore propose a conservative capital structure of 20% Debt and 80% Equity for the LBO Sep 17 PRASANTH S 1828618 transaction. No one has joined your call JEEN MARIAM JOY 1828631 You: Let's chat on Hangouts! Sep 17 AD Littt Gang Type here to search Of ex w O 4:52 AM 10/29/2019