Mini LBO Underwrite
You are underwriting a 5-year LBO for a private equity investment committee. Company (fictional): HarborTech Services (HTS) –…
HarborTech Services: 5-Year LBO Underwriting Conventions: $m. Interest is charged on beginning-of-year balances, which avoids circularity. Term Loan (TL) amortization is 1% of the original $480m, or $4.8m per year. Mezz PIK accrues to principal. All FCF after mandatory debt service sweeps to the TL.Read the full answer
Investment Committee Memorandum: HarborTech Services (HTS) 1. Financial Summary & Free Cash Flow Build All figures in $USD millions unless otherwise noted. Entry Sources & Uses (Close FY2025) Uses: Purchase Price ($1,440m) + Fees ($28.8m) = $1,468.8m Sources: Term Loan ($480m) + Mezzanine ($180m) + Equity ($808.8m) =…Read the full answer