Credit Suisse Investment Banking Pitch Book
CONFIDENTIAL
Solar LBO Analysis
Solar Price of $35.00 per Share
(S in milions, except per share
Sources & Uses
Sources:
Cash and Equivalents
Bank Debt
High Yield
Sponsor Equity
Total Sources
Uses
Refinance ST Debt"
Refinance LT Debt
Purchase Solar Equity
Cash on Hand (Beginning Bal.)
Transaction Expenses
Total Uses
Credit Analysis ($35.00 per share)
EBITDA (2)
Bank Debt
Total Debt
Total Debt / EBITDA
EBITDA/ Interest Expense
Total Debt/Capitalization
$210
2,729
4,366
4,178
$11,483
CREDIT FIRST
SUISSE BOSTON
$8
509
10,640
150
175
$11,483
Valuation
Price per Share
FD Shares (MM)
Equity Value
Plus: Net Debt
Aggregate Value
2004 PF EBITDA
Agg Value/2004 PF EBITDA
2004PF
$1,092
2,729
7,095
6.5x
2.1x
62.9%
2005E
$1,153
2,581
6,948
6.0x
2,2x
61.2%
$35.00
304.0
10,640
308
$10,948
Source: Financials per Solar Management.
Note: Assumes management receives incremental 5.0% equity interest and 5.0% of options with a strike price of $35.00
(1) Existing debt and cash as of December 31, 2004 and pro forma for OSSI, Inflow, Vivista, Integrity and RRI acquisitions
(2) 2004 EBITDA pro forma for OSSI, inflow, Vivista. Integrity and RRI acquisitions
(3) Assumes an interest rate of 6.0% and 8.5% for the bank debt and high yield, respectively
1,092
10.0x
2006E
$1,252
2,442
6,808
5.4x
2.4x
59.2%
Return Analysis - 2009
Exit Multiple
9.0x
10.0x
11.0x
12.0x
2007E
$1,357
2,094
6.460
4.8x
2.7x
56.2%
2008E
$1,428
1,721
6,087
2.9x
52.8%
IRR (5-year)
12.2%
16.0%
19.4%
22.4%
2009E
$1,498
1,309
5,675
3.8x
3.2x
49.1%
13View entire presentation