Question
PE Firm acquired the equity of a company for $500 million. It borrowed $450 million to finance the transaction and repay existing debt. The
PE Firm acquired the equity of a company for $500 million. It borrowed $450 million to finance the transaction and repay existing debt. The remaining funds came from an equity contribution by PE Firm. The company had debt outstanding at the time of purchase of $150 million which was refinanced in connection with the transaction. Transaction fees of $10 million were incurred along with financing fees of $5 million. What would be the total uses of funds for the transaction?
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Fundamentals of corporate finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
2nd Edition
978-0470933268, 470933267, 470876441, 978-0470876442
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