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Rareliquid Practice

The document outlines a leveraged buyout (LBO) transaction for Burger King (BKC), detailing financial assumptions, capital structure, and sources and uses of funds. It includes information on secured term loans, equity payments, and projected financials for the years 2008 to 2015. The valuation at entry indicates an offer value of $24.00 per share, representing a 27% premium.

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33 views5 pages

Rareliquid Practice

The document outlines a leveraged buyout (LBO) transaction for Burger King (BKC), detailing financial assumptions, capital structure, and sources and uses of funds. It includes information on secured term loans, equity payments, and projected financials for the years 2008 to 2015. The valuation at entry indicates an offer value of $24.00 per share, representing a 27% premium.

Uploaded by

dhruvgajjar.official
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

LBO

Switches

Circuit Breaker ON
Case 1.00 Conservative

Assumptions

Transaction Background
Company name Burger King
Ticker BKC
Latest closing share price 18.86
Latest closing share price date 1/9/2010

Transaction Financials and Assumptions


LTM EBITDA
Debt 755
Cash 188
Minimum Cash 118
Exit Multiple

Capital Structure
Amount xEBITDA
Secured term loan - USD tranche 1,510 #DIV/0!
Secured term loan - Euro tranche 334 #DIV/0!
Senior term loan 800 #DIV/0!
Total 2,644 #DIV/0!

x Sources and Uses

Sources
Amount xEBITDA % Capital
Secured term loan - USD tranche 1,510
Secured term loan - Euro tranche 334
Senior term loan 800
Cash on hand 69
Sponsor equity 1,560
Total 4,274

x Financials

Assumptions

Revenue growth
Gross margin
EBIT margin
Tax rate

Operating Model 2008A 2009A 2010A

Revenue
% growth

COGS
% of sales

Gross Profit
% of sales

OpEx
% of sales

EBIT
% of sales

EBIT - Conservative
% of sales

EBIT - Management
% of sales

Interest Expense
Interest Income

EBT
% of sales

Taxes
% tax rate

Net Income
% of sales
Valuation at Entry
Offer value/share 24.00
% premium/discount 27%

Offer value (Equity value) 3,325


Diluted shares outstanding 139

Debt 755
Cash 188

Enterprise Value 3,893


LTM EBITDA
Entry Multiple #DIV/0!

Interest(%) Fees(%) Fees($) Term Amortization


6.8% 2.7% 40.8 6 Years 7
7.1% 2.5% 8.4 6 Years 1
10.2% 2.5% 20.1 8 Years 3
69 11

Uses
Amount xEBITDA % Capital
Equity payment 3,325
Debt refinancing 755
Transaction fees 91
Financing fees 69
Other 33
Total 4,274

2011E 2012E 2013E 2014E 2015E


Step

0.00%
1.00%
2.00%
3.00%
Diluted Share Count Calculation

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