Calculating the second lien interest starts with the base rate and we need to find if that's going to be the higher of the floor or LIBOR. So I want the maximum of, and I go to the Input tab, and I find LIBOR, and I compare that with our second lien's 0.25%. I'm gonna lock that as well, the higher of the two being LIBOR. Next, I go to the Input tab and I find the margin that's charged above that and the margin is 7.5%. I lock that as well.

And so my eventual interest rate is the sum of the two. So I now want to take that figure. I want to make it a negative. And I multiply it by the average balance that we had over the period. We had 300 as the closing balance last period and 300 this period. Now, in the period finished December '18, we only owned the company for three months. So I only want the interest from those three months, which means I'm multiplied by the Postdeal_Percent, which takes only three months' worth of the interest. When I copy this to the right however, in the year ended December '19, I want to get rid of that Postdeal_Percent so that I get a full 12 months of interest.

For the high yields, our interest rates aren't quoted in the same way as for the second lien. Instead, we're just given a figure. So I can go to the Input tab, scroll over to my high yield and I can find it. We're just given a figure of 8.25%. I'm gonna lock onto that. So my interest expense is going to be that negative of that figure multiplied by the average of the ending balances. Because I'm in December '18, I want to multiply that by the Postdeal_Percent, so I only get three months' worth. When I copy that to the right, I'll make sure that I get rid of that Postdeal_Percent. Lastly, let's scroll down to the mezzanine. Now, for the mezzanine, it's slightly different. I do need an interest rate as before, and I need an interest expense as before. But we're going to use that interest to add onto the opening balance.

So as time goes on, the interest will gradually accrue up and the debt will increase. So let's go get our interest rate, off to the Input tab. Our mezzanine interest rate, very high, 10%. My interest expense is then the negative of that figure, but because it's mezzanine, we don't calculate interest in the same way. We don't need to take the average of balances, we just multiply it by the beginning balance.

Because I'm in that December '18 period, I'm gonna multiply that by the Postdeal_Percent, and when I copy that to the right, again remember to get rid of that Postdeal_Percent.

Now I can take those interest expense figures and I can add them onto the opening balance. You might notice we've got negative interest expense given. I need to change that to a positive if it's going to be added onto the balance. So now the 100 opening balance goes up by 2.5 to 102.5 and because that causes the next opening balance go up, the interest we had here of 10 has now actually gone up to 10.3. Those new interest figures can now all be copied to the right.