world227_tg_02
Investment Banking Quantitative CalculationUsing Option B in the MFC model, the refinancing in conjunction with a equity private placement (preferred stock), update to upsize the preferred tranche to $1.5bn and for interest to be payment-in-kind (PIK) rather than in cash. In addition, the preferred will now be redeemed at the end of 2030.
When the preferred matures, MFC will aim to execute a refinancing for up to 4.5x of gross leverage (gross debt / LTM EBITDA). Use of proceeds from this re-financing will be applied to (a) pay off the preferred; and then (b) fund a shareholder special dividend
Calculate the maximum size of the shareholder special dividend in $s to the nearest million. Print the answer here.
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