hard · Private Equity & LBOs
In an LBO 'Sources and Uses' table, a target has an Enterprise Value of 500M. Transaction costs are 25M and existing debt of 75M must be refinanced.
If the sponsor secures 300M in new debt and management rolls 25M in equity, what is the 'Sponsor Equity' plug?
- $125M
- $525M
- $200M
- $275M
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