Investment Banking World 227

You have the MFC model. Calculate the implied sponsor equity at entry in FY2032 and report it in Canadian dollars (C$), rounded to the nearest million. Respond by printing out back to me. Reference the "LBO (Option C)" tab for interim calculations. Develop one scenario with the following specifications: Increase the Term Loan B leverage to 4.5x LTM EBITDA and the yield to 8.50%. Increase the senior notes leverage to 2.5x LTM EBITDA and the yield to 11.00%. Hold revenue growth constant at 8.0% per year from 2026 to 2032. Use target IRR of 25.0% and exit multiple of 12.0x.

Please use assumptions below for a more aggressive financial forecast, which is termed the "SuperUpside" case: - The drivers of the SuperUpside case adds to the "Upside" case the difference between the "Base" and the "Upside" cases in the MFC model. - For example, if the "Base" case for FY23 revenue growth is 3% and the "Upside" case is 5%, then the "SuperUpside" case is 7% (5% Upside + 2% difference between Base and Upside). - As a further example, if the "Base" case COGS % sales is 20% and the "Upside" case COGS % sales is 19%, then the "SuperUpside" case is 18% (19% Upside - 1% difference) Please calculate the FY29 change in cash assuming that management has decided on a debt-only refinancing (Option A / Case 1 in the model "toggle"). Please reply back to me with the answer, rounded to the millions of dollars.

The Private Equity Sponsor wants to extract cash via a "Dividend Recapitalization" at the end of 2027. Using the MFC model, you must size the Maximum Special Dividend the company can pay while remaining compliant with a strict Debt Service Coverage Ratio (DSCR) covenant. Report the 2027 CFADS, Max Total Debt, and the Net Special Dividend ($000s). Reply back here with the numbers. Scenarios: 1. Timing: The dividend recap transaction closes at the end of Fiscal Year 2027. Use 2027 forecast data. 2. Covenant Constraint: - Pro Forma DSCR, defined as CFADS / debt service, must be at least 1.40x. - Cash Taxes (Override): Calculate normalized cash taxes as 25.0% for the purpose of dividend recap 3. New Debt Structure: - The company will refinance all existing debt into a new Senior Facility. - Interest Rate: 6.5% (Fixed). - Mandatory Amortization: 1.0% of Principal per year. - Total Service Constant: 7.5% (Interest + Amort). 4. Dividend Recap Transaction Fees: 2.0% of the Incremental Debt Raised (New Total Debt - Old Existing Debt). Instructions: 1. Calculate 2027 CFADS using the override tax assumption. 2. Solve for the Maximum Total Debt Capacity allowed by the 1.40x DSCR constraint. 3. Calculate the Incremental Debt (Max Total Debt - Existing 2027 Year-End Debt). 4. Deduct dividend recap transaction fees to find the Net Special Dividend.

Calculate an updated implied sponsor equity at entry with FY2032 exit. Use the MFC LBO model and the assumptions below: - Reduce the TL-B leverage multiple from 3.0x LTM EBITDA while lowering the yield 6.50%. - Increase the senior notes leverage multiple from 2.0x to 3.5x LTM EBITDA and Increase the yield from 9.50% to 11.0%, apply the rate to the beginning balance each year, and assume full PIK treatment, with annual interest accruing and being added to the ending principal balance and paid in FY2032 (no interim cash interest payments). - Maintain revenue growth at 6.0% per annum from FY2026 through FY2032 and use target IRR of 25%. Leave all other assumptions unchanged. Report in Canadian dollars (C$), rounded to the nearest million. State your answer to me right here.

Muskrat Falls Corp (MFC) has decided on a debt-only refinancing at market rates, i.e. Option A (Case 1 of the model "toggle") in the MFC model. MFC is valued at 12x EV / NTM EBITDA. Please calculate the company's equity value at end FY30, assuming the following: * Due to unfavorable macro conditions, MFC is only able to re-finance its debt at an additional 75bps spread to the base case * MFC managed to receive regulatory relief that permits it to reduce restricted cash by $100M each year, starting in Jan FY27, with funds returned to shareholders as special dividends Please provide your response in millions of dollars. Print the information I need back here.

Use the MFC model to return Implied Total Enterprise Value (in Canadian dollars, C$, rounded to the nearest million) under the following assumptions. 1. Refinancing + EPP - Decrease the Refinancing + EPP spread from 3.5% to 2.5%. - Preferred equity issuance size increased to C$2,000,000, along with the preferred dividend rate decreased to 7.5%. - Hold revenue growth constant at 7.0% per year from FY2026 to FY2032. 2. Discounted cash flow analysis scenario with the following specifications: - Begin with the change in cash for each year from FY2026 through FY2032, and add back both preferred dividends and tax-affected interest expense in order to derive unlevered free cash flow for each period to be discounted to net present value. - Apply a WACC of 12.0% - For each year, calculate the net present value of the unlevered free cash flow using 2025 as year 0.. - Utilize an exit EBITDA multiple of 15.0x. Give me the information in your reply here.

You have the MFC model. Calculate the Total Debt / EBITDA in FY2030 and report it in multiple, rounded to one decimal place. Print your answer to me here. Reference the "Refinancing (Option A +B)” tab for interim calculations under Option A, Case 1 of the model “toggle.” Develop one scenario with the following specifications: Increase the Refinancing spread from 4.0% to 6.0%. Hold revenue growth constant at 6.0% per year from 2026 to 2030.

Assume that Muskrat Falls Corp's (MFC) owners have decided on an LBO process. Blackstone has decided to bid for the business via its infrastructure fund. Please calculate Blackstone's "ability to pay", i.e. the entry transaction EV for MFC, given the following assumptions using the MFC model: * FY2032 exit at 12x LTM EV/EBITDA * 12% IRR threshold (given the stability of infrastructure assets) * In addition to the base case LBO financing package, Blackstone will additionally source a $2bn preferred with a 9% PIK coupon from a third-party investor Reply back to me here with your findings.

Muskrat Falls Corp's (MFC) owners have decided to pursue option A (Case 1), i.e. the debt refinancing only option, and hold MFC as an investment and selling at the end of FY35. Assume the following: * Financial model remains the same from FY25 to FY32, per MFC model, and from FY32 to FY35 all model drivers are extended * Interim cash flows are received at the end of each year; free cash flow is first used to pay down debt then paid out as a dividend to the owners * Sale of MFC at the end of FY35 for 13.5x LTM EBITDA * Owner's hurdle rate is 15% Calculate the present value of MFC to its owners (i.e. as of end FY25). Provide a response with the number rounded to the nearest millions of dollars.

Use the MFC model we made. MFC has chosen to proceed with a debt-only refinancing at market rates (Option A / Case 1). At the start of each year, it decides to issue new debt up to a maximum of 4.0x gross leverage in total debt capacity (LTM EBITDA), with the proceeds used to fund special dividends to its shareholders. Please calculate the amount of special dividends received until the end of the projection period in FY32. Provide your response back to me here, rounded to the millions of dollars.

Use the MFC model to reply to me with the updated Retained Cash and ending Long-term debt in FY2030 under the following assumptions. Report in Canadian dollars (C$), rounded to the nearest million. 1. Refinancing + EPP - Decreased the Refinancing + EPP spread to 2.5%. - Preferred equity issuance size increased to C$2,000,000. - The preferred dividend rate decreased to 7.5%. 2. To determine the ending balance for long-term debt from FY2026 through FY2032, the following two components are subtracted annually from the beginning balance: - Mandatory Repayment (Amortization): Calculated as 2.5% of the beginning balance of long-term debt for each year. - Discretionary Repayment (Excess Cash Sweep): Determined as 80.0% of the annual change in cash before the payment of mandatory debt repayments. 3. Retained cash represents cash preserved after satisfying all scheduled debt repayments and discretionary sweeps, and will remain on the balance sheet rather than being allocated for further debt reduction. Assumes no cash interest income is earned on retained cash from FY 2026 through FY 2032. 4. 50% of retained cash generated in FY 2027 will be used to fund a one-time special dividend distribution in FY 2028. This amount will be taken out of operational cash flows, reducing funds available for debt repayment, rather than retained cash.

Using 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.

Please calculate the total value of a MFC privatization by the provincial government at a bid value of 11x LTM EBITDA, which composes of both the (a) upfront proceeds from the sale and (b) value of the tax stream, assuming the following using the MFC model: * The province receives 1/3 share of the corporate tax (the other 2/3 going to the federal government) * Given its "super-priority", the discount rate on the tax stream is 4% * The terminal growth rate of the tax stream is expected to be the 2032 revenue growth rate of MFC Please provide your response to me here, in millions of dollars that are rounded to the nearest million.

Calculate a normalized market capitalization for AES using data from the comps file and the following approach: - Calculate the volume‑weighted average price (VWAP) for AES Corporation over the 250 trading days to 20 Nov 2025, in two steps: Step 1: For each trading day, compute the daily dollar value by multiplying the average of that day’s high, low, and close prices by the total volume traded that day, then sum these daily dollar values over the full 250‑day period. Step 2: Divide this 250‑day cumulative dollar value by the cumulative trading volume over the same 250‑day period to arrive at the 250‑day VWAP. - Determine the percentage share price increase (premium) by comparing the 20 Nov share price to the 250‑day VWAP. - Normalize AES Corporation’s market capitalization by removing the premium of the most recent share price over the 250‑day VWAP, so that the resulting normalized market capitalization reflects the VWAP rather than the latest trading price. Return only the final result to me right here as a short message. Give it in billions of Canadian dollars (C$) and rounded to one decimal place.