Credit Suisse Investment Banking Pitch Book
CONFIDENTIAL
Preliminary LBO Analysis
Solar Price of $35.00 per Share
(3 in milions, except per share
Sources & Uses
Sources
Cash and Equivalents (¹)
Bank Debt
High Yield
Sponsor Equity
Total Sources
Uses:
Refinance ST Debt (¹)
Refinance LT Debt
Purchase Solar Equity
Cash on Hand (Beginning Bal.)
Transaction Expenses
Total Uses
Credit Analysis ($35.00 per share)
EBITDA
Bank Debt
Total Debt
Total Debt/EBITDA
EBITDA / Interest Expense
Total Debt/Capitalization
B
CREDIT FIRST
SUISSE BOSTON
$661
2,612
3,657
4,588
$11,518
$47
10,640
150
175
$11,518
Valuation
Price per Share
FD Shares (MM)
Equity Value
Plus: Net Debt
Aggregate Value
2004 EBITDA
Agg Value/2004 EBITDA
2004PF
$1,045
2,612
6,270
6.0x
2.3x
57.7%
2005E
$1,098
2,429
6,086
5.5x
2.4x
55.8%
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
(2) Assumes an interest rate of 6.0% and 8.5% for the bank debt and high yield respectively
$35.00
304.0
10,640
(108)
$10,533
1,045
10.1x
2006E
$1,211
2,137
5,795
4.8x
2.7x
53.1%
Return Analysis - 2009
Debt:
Exit Multiple
9.1x
10.1x
11.1x
12.1x
2007E
$1,322
1,727
5,384
4.1x
3.1x
49.5%
2008E
$1,389
1,296
4.954
3.6x
3.5x
45.5%
IRR (5-year)
12.6%
16.0%
19.0%
21.7%
Cash Management projects a year-end 2004 cash
balance of $661 (versus $487 as of 9/30/04)
$1,459
770
4,428
2009E
Management projects a year-end 2004 debt
balance of $553 (versus $559 as of 9/30/04)
3.0x
3.9x
40.9%
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