hard · Investment Banking ma-lbo
An LBO is structured with a 50% cash sweep. If Year 1 Levered Free Cash Flow after mandatory amortization is $20.0 million, and the company has a $5.0 million draw on its Revolver, how is the cash allocated according to the standard debt waterfall?
- $5.0 million to the Revolver,$15.0 million to the Term Loan
- $10.0 million to the Term Loan,$5.0 million to the Revolver, $5.0 million to Cash
- $5.0 million to the Revolver,$7.5 million to the Term Loan, $7.5 million to Cash
- $10.0 million to Cash,$10.0 million to the Term Loan
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