hard · Private Equity advanced-lbo
In an LBO sources and uses table, a sponsor pays $500M for a company's equity and refinances $200M of existing debt. Transaction fees are $15M, and financing fees (capitalized) are $10M. The deal is funded with $400M of new debt and a $50M management rollover.
How much cash equity must the sponsor contribute?
- $325M
- $275M
- $265M
- $300M
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