The next four questions use data from the LBO-Item-Set-3.xlsx" file, which can be downloaded by clicking here. You do not need data from Sections 3 and 4 to answer this question. You are modeling a LBO transaction to close on 12/31/2016, which is being funded with the debt securities listed in the Excel file, with their expected repayment plans. In 2017, the net change in Total Cash for the Balance Sheet will be: No change in cash 36.75 million decrease 113.250 million increase 109.250 decrease Section 1 Current date Table 1: 2017 Beginning debt Table 1: 2017 Beginning debt Revolver Term Loan B Term Loan C 1st Lien Bonds 2nd Lien Bonds Subordinated note Assume all interest is calculated off beginning of year balances Assume a cash balance on 12/31/2016 of 0 Treatment of excess cash If there is a cash surplus after making all required principal p[ayments, The company decided that any excess cash generated will go to pay down the Term Loan C first. if there's anything left over, it will go to pay down term loan B (above and beyond the required prinicipal paydown). If there's anything left over, it will go to pay down the revolver. Should the revolver get fully paid down, cash will accumulate. Treatment of cash shortfall IF cash is insufficient to meet required payments, the revolver will be tapped to fund the required principal payments Section 2 2017 Projections EBITDA D\&A Capital expenditures Tax rate LIBOR (bps) 12/31/2016 Interest rate Term (years) 750,000,000 Libor +300 basis points with 1 1,500,000,000 Libor +300 basis points with 1 4,000,000,000 Libor +375 basis points with 1 2,000,000,0005% annual coupon (paid at yea 1,250,000,0006.5% annual coupon (paid at y 2,000,000,0007.25%50% as PIK, 50% in cas Term (years) Mandatory Principal Paydown (\% of original amount) 6 NA 6 Yr 1: 10%, Yr 2: 17.5%, Yr. 3: 22.5%, Yr. 4: 25%, Yr 5: 25% 8 NA 7 NA 8 NA 10 NA