medium · Private Equity
An LBO of Meridian Industrial features a 'Cash Sweep' mechanism. In Year 1, the company generates $40M in EBITDA, pays $15M in interest, $5M in taxes, and $10M in Capex.
If the mandatory amortization is $2M, how much is available for the voluntary cash sweep?
- $10M
- $8M
- $5M
- $25M
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