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Assignment - Debt Schedules

Assignment - Debt Schedules - 1 You are buying a company...

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1) You are buying a company for $8mm. At the time, the company's EBITDA is $1.8mm. You are given the following information: Now Year 1 Year 2 Year 3 Year 4 Year 5 EBITDA 1,800,000 2,000,000 2,200,000 2,420,000 2,662,000 2,928,200 Depreciation / Amort. 400,000 400,000 400,000 400,000 400,000 CapEx 500,000 500,000 500,000 500,000 500,000 Debt Structure Principal Amnt. Interest Rate Term Term Loan 2,000,000 7% 4 equal annual installments with interest Seller Note 1,000,000 10% Annual interest payments, balloon payment at the end of Year 5 Line of Credit 1,000,000 8% Interest payments each year, paid off at end of year 5 2) Fill in the following DEBT SCHEDULE for Years 1 - 5 & determine the DSCR for Years 1 - 5: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Principal Payments: Term Loan Seller Note Line of Credit Total Interest Payments: Term Loan Seller Note Line of Credit Total Cash Flow DSCR Balance Term Loan Seller Note Line of Credit Total 3) Build a cap table for the deal. You know what you purchased the company for and what you financed with debt. - You set up NewCo (i.e. you're doing an asset purchase) and put $1mm of your own cash in the account.
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