LBO and Paper LBO

Core

Sources and uses, debt schedule, cash sweep, exit multiple, and returns math.

Uses are what the deal must pay for: the target's equity at the offer price times diluted shares, refinancing of existing debt, transaction and financing fees, and any cash left on the balance sheet. Sources fund those uses: senior secured debt, junior debt such as high-yield notes, management rollover and sponsor equity. Sponsor equity is the plug that makes total sources equal total uses.

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