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LBO Summary
Questions/Discussions
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In the "LBO Summary" worksheet, if the "Refinance Option 3 – Refinance All-Existing Debt Refinanced” is selected for switch cell "W3", I then thought the “Existing Debt – Tranche 1” in the Debt Sweep worksheet would be presented just like the “Existing Debt – Tranche 2” below:
Existing Debt
Tranche 2
Beginning Balance $ - $ - $ - $ - $ -
Mandatory Debt Repayment - - - - -
Ending Balance $ - $ - $ - $ - $ - $ -
Average Balance $ - $ - $ - $ - $ -
Instead, the below presentation takes place :
Existing Debt
Tranche 1
Beginning Balance $ - $ (459) $ (480) $ (913) $ (1,116)
Mandatory Debt Repayment (459) (21) (433) (203) -
Ending Balance $ - $ (459) $ (480) $ (913) $ (1,116) $ (1,116)
Average Balance $ (230) $ (470) $ (697) $ (1,015) $ (1,116)
Please help me to understand what has happened and how to resolve it, if any. Shouldn't the “Tranche 1 Mandatory Debt Repayments” (which is based on 10-K Footnote) be tied to a Switch Cell that is related to Refinance Options?
I understand this presentation implies and shows that the Total Mandatory Debt Repayment will be reduced by the amount that is related to the Existing Debt Tranche 1 Mandatory Repayments and, at the same time, will also be increased due to increases in other debt amounts. Therefore, it is not a 1-for-1 reduction. The same logic applies to Interest Expense.
Thank you very much in advance for your help. Read More