We need to work out how much old debt this LBO company has if we're then going to be able to work out how much of the new debt pays it off, and then how much of the new debt can be paid out as a dividend to our shareholders. So getting the old debt number is crucial.

We're going to do that here on the recap tab, but we'll be linking to the base case recap to help us. So let's scroll down. And in row 19 we've got the senior debt, the existing debt facilities. I'm going to press equals I'm going to go to the base case recap tab.

I'll then go to the bottom. And here we've got data tables showing us the debt levels, pre recap and post recap. I want the historical pre recap, so that's in row 133 next to the 0 for the recap switch.

I can then do exactly the same for the unsecured notes, go to the base case, recap down to the data table, and it's in row 137.

Sum them up to find the total debt. And then the cash comes from the third data table at the bottom of the base case recap tab, and I can then subtract that off the total debt to get to the net debt. Great. Now I need to copy that to the right so that I can work out the multiples underneath my senior debt multiple here. I'm going to take the 949.1, but I need to divide it by EBITDA. Again, I've got that on the base case recap tabs in the income statement. So I'll scroll back up and find that. But I've got a couple of numbers I could choose from. I'm gonna grab the adjusted EBITDA number. That's after any cost savings that the LBO has been able to take on. This is, regardless of whether the recap has happened or not, that gets me a multiple of 2.6. Now, I'd love to copy this down, but I'm gonna have to make sure that that G31 stays in row 31. So I'm going to enter the formula bar and just press F4 once, twice. And now I've got that dollar sign before the 31.

I can copy that down. Two more cells and it gives me my unsecured note, multiple of 1.5 and the total debt of 4.1. If I copy it down one more time, unfortunately it's not going to gimme the net debt. It's gonna give me some useless cash multiple number. So let's just change G22 to G23. Great. If we now copy all of these numbers to the right, we'll get all of our old debt pre recap. These numbers are really important because we can compare to the post recap numbers later. Our multiples at the moment we might notice are gradually going down, going down for the senior debt, and then as the senior debts paid off, the unsecured notes start really going down quickly. But what we'll see after the recap is that as we get into year three, we'll see these multiples suddenly jump back up again as we take on more debt, that multiple will get higher. We'll want to keep an eye on these multiples. We don't want to see them breaking through any thresholds that would stop us being allowed. The extra debt in the recapitalization.