Evercore Investment Banking Pitch Book
Weighted Average Cost of Capital Analysis
SIRE WACC Analysis - Capital Asset Pricing Model
CAPM
WACC
1.
2.
3.
4.
5.
6.
Partnership/Corporation
Ciech SA
Genesis Energy, L.P.
Türkiye Sise ve Cam Fabrikalari A.S.
Solvay SA
Tata Chemicals Limited.
Sisecam Resources LP
3
Risk-free Rate
Unlevered Beta
Debt Total Capitalization
Adjusted Levered Equity Beta
4
Market Risk Premium
Small Company Risk Premium
Equity Cost of Capital 5
WACC
Pre-Tax Cost of Debt Ⓡ
After-Tax Cost of Debt
4
Unit/Share Price
10/4/22
$21.05
6.2%
$6.96
10.05
1.47
86.42
14.00
10.0%
Supply-Side MRP
8.4%
4.0%
0.44
35.7%
0.61
2.3%
7.7%
5.4%
Market Equity
Value
$366.8
1,231.9
4,393.8
8,915.2
3,567.7
$425.2
Historical MRP
7.3%
10.6%
8.8%
Note: Capital structure includes effect of dilutive securities and GP interest; does not attribute value to the IDRs
Predicted raw betas from FactSet; Adjusted Equity Beta calculated as: (0.67) x Raw Beta + (0.33) x 1.0
Unlevered Beta calculated as: Adjusted Equity Beta x (E/(E + D x (1-T)); Assumes corporate tax rate of 29.6%
20-year Treasury as of October 4, 2022
19
Total Debt and
Preferred Equity
Mean
Median
Confidential - Preliminary and Subject to Change
($ in millions, except per unit
$434.5
4,160.9
2,054.6
4,946.4
861.8
$154.3
Total Debt /
Total Capitalization
0.39
25.0%
8.3%
30.0%
8.2%
35.0%
8.1%
40.0% 8.0%
45.0% 7.9%
54.2%
77.2%
31.9%
35.7%
19.5%
43.7%
35.7%
26.6%
0.39
25.0% 8.6%
30.0% 8.5%
35.0% 8.5%
40.0% 8.4%
45.0% 8.3%
unit/ share amounts,
Adjusted
Beta
1
8.3%
8.2%
0.84
1.03
0.56
0.75
0.57
Supply-Side MRP WACC Sensitivity
Debt / Total Cap
0.44
8.5%
8.5%
8.4%
0.75
0.75
0.62
0.49
8.8%
8.7%
8.7%
8.6%
8.5%
Historical MRP WACC Sensitivity
Debt / Total Cap
0.44
9.0%
8.9%
8.8%
8.7%
8.6%
Unlevered
2
Beta
0.49
9.3%
9.2%
9.1%
9.0%
8.9%
Duff & Phelps for Decile 9, including companies with an equity market capitalization of $190.0 million to $451.8 million
Equity Cost of Capital calculated as: Risk-free rate of 3.8% + (Levered Equity Beta of 0.63 x Market Risk Premium of 6.2% (Supply Side) or 7.3% (Historical)) + Small Company Risk Premium of 2.3%
Based on ICE BofA US High Yield Index (BB)
EVERCORE
0.44
0.31
0.41
0.52
0.48
0.43
0.44
0.50
0.54
9.1%
9.0%
8.9%
8.8%
8.7%
0.54
9.6%
9.5%
9.4%
9.3%
9.2%
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