Refinancing (as of 31/12/1998) 5)

Using the Cash Flow projections in Exhibit 4, with the exclusion of Bank Debt (line 14), build a debt repayment model assuming that the new loans must be repaid as quickly as possible over the next 8 years. [Assume that the firm CCF grows at 3% per year after 2003 forever.]

Exhibit 4. BartCo Projection as of 31/12/1998 ($ millions)
	1999	2000	2001	2002	2003
Revenue	127.9	134.3	138.3	142.5	149.6
Cost of Goods Sold	81.9	84.6	85.0	87.6	91.8
Gross profit	46.1	49.7	53.3	54.9	57.8
SG&A	39.4	39.8	41.0	42.2	43.4
EBIT	6.6	9.9	12.3	12.8	14.4
Interest Expense	4.2	4.6	3.8	3.1	2.4
Taxes (@40%)	0.0	0.0	2.2	3.9	4.8
Net income	2.5	5.4	6.3	5.8	7.2
EBITDA	10.0	13.3	15.7	16.2	17.8
Depreciation	3.4	3.4	3.4	3.4	3.4
Capital expenditures	3.9	3.9	3.9	3.9	3.9
Increase in NWC	1.4	1.3	0.9	0.9	0.9
Bank debt	50.9	42.8	34.0	26.5	18.3