Question
The PE firm KKR bought ValChem in a leveraged buyout using senior bank debt, a revolving credit line, and subordinated bonds. ValChem is paying off
The PE firm KKR bought ValChem in a leveraged buyout using senior bank debt, a revolving credit line, and subordinated bonds. ValChem is paying off its senior bank debt and revolving credit line using the cash flow sweep assumption. What is the senior bank debt at the end of the year 2021 assuming that: Revolver balance at the beginning of the year = $200 Senior bank balance at the beginning of the year = $1,139 Annual mandatory payment on the senior bank debt = $450 Cash flow available for debt repayment during 2021= $800
Senior bank debt balance ($) at the end of the year 2021?
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