medium · Private Equity
An LBO model shows a Year 1 EBITDA of $85M, cash interest of $17.7M, and a mandatory debt amortization of $30M. If the cash taxes are $8.3M, Capex is $16.1M, and the change in Net Working Capital is a $2.3M increase, calculate the cash available for an optional debt 'sweep'.
- $40.6M
- $12.9M
- $10.6M
- $28.3M
Sign up free to see the explanation and track your rank →
More Private Equity practice
- If the actual SOFR rate drops to 0.50%, what is the total interest rate paid by the borrow
- In a European (whole-fund) waterfall, a fund has called $100… — How much 'carried interest
- What is the fund's Total Value to Paid-In (TVPI) multiple?
- What is the new effective conversion price for the growth equity investor?
- What is the maximum debt allowed if the leverage covenant is set at 5.0x Covenant EBITDA?
- If EBITDA remains exactly the same and no debt is paid down, which lever is the sole sourc
- If net debt remained constant at $200M throughout the hold, what was the primary source of
- Which company will report a higher 'Gross Margin' and a higher ending 'Inventory' value on