Question $32$ of $34$

You have built an LBO model for a leveraged buyout funded by a combination of a Revolver and Term Loans.

The Term Loans have a fixed annual amortization and a $50\%$ Cash Flow Sweep. The relevant sections of the

Debt Schedule in the model are shown in the attached image. Cell $146$ in the formula above contains $50\%$ for the

Cash Flow Sweep percentage on the Term Loans, and the

Revolver has the top repayment priority with a $100\%$ Cash Flow Sweep.

Is there a way to SIMPLIFY the "Cash Flow Sweep" formula in cell $1765$ and still get the same results in the

model?

A$)$ Yes $-$ we could check to see if the Revolver Drawdown $(1158)$ is positive, and if so$,$ set the Cash Flow Sweep

to $0$ for

the current year.

B$)$ Yes $-$ since the Annual Amortization is a fixed number, we don't need the second part of the inner MIN

formula,

which takes the Beginning Term Loan balance and subtracts the Annual Amortization.

C$)$ Yes $-$ we could remove the $"+1758"$ within the inner MIN formula because if the company has a Cash Flow

Surplus,

we don't need to factor in Revolver Drawdowns or Repayments.

D$)$ No$,$ not with the current layout of this Debt Schedule.