11. Calculate the interest rate for a revolving credit information. e interest r

Question

11. Calculate the interest rate for a revolving credit information. e interest rate for a revolving credit facility in 2014 given the following (2 points) Details: Pricing spread: 350 bps. ($ in millions, fiscal year ending December 31) Debt Schedule Pro forma Year 1 2008 2009 3.00% 0.00% Projection Perlod Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 8 Year 10 2010 2011 2012 2013 2014 2015 2016 2017 2018 3.15% 3.30% 3.60% 4.00% 4.35% 4.80% 4.85% 5.10% 5.2598 Forward LIBOR Curve a. 7.85% b. 4.35% c. 0.85% d. 3.5% 12. Given the following information, calculate the cash that will flow to the balance sheet, assuming a 100% cash flow sweep. (2 points) Details: Free Cash Flow: $65.0m Term Loan B amortization: $5.0m Optional debt repayment: $70.0m a. $60.0m b. $70.0m c. $65.0m d. $0.0 13. All of the following are deal considerations that sell-side advisors seek to achieve EXCEPT (2 points) a. Value maximization b. Speed of execution c. Dilution d. Certainty of completion 14. In which of the following scenarios would a sell-side advisor consider running a broad auction? (2 points) a. Seller is flexible regarding timing b. Seller is flexible regarding potential business disruption c. Confidentiality is not a priority d. All of the above

Explanation / Answer

11) Rate of interest for revolving credit facility = Forward Libor curve + spread = 4.35% + 3.50% = 7.85%

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.