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
10/7/22
$20.56
6.2%
$6.68
10.15
1.60
82.30
14.36
Supply-Side MRP
10.3%
8.5%
4.1%
0.44
36.4%
0.62
2.3%
7.5%
5.3%
Market Equity
Value
$352.2
1,244.2
4,778.2
8,489.5
3,657.6
$415.3
Historical MRP
7.3%
10.9%
Note: Capital structure includes effect of dilutive securities and GP interest; does not attribute value to the IDRs
Predicted raw betas from FactSet; Adjusted Equity Beta calculated as: (0.67) x Raw Beta + (0.33) x 1.0
Unlevered Beta calculated as: Adjusted Equity Beta x (E/(E + D x (1-T)); Assumes corporate tax rate of 29.6%
20-year Treasury as of October 7, 2022
8.9%
20
Total Debt and
Preferred Equity
Mean
Median
Confidential - Preliminary and Subject to Change
($ in millions, except per unit
$422.5
4,160.9
2,054.2
4,861.4
853.2
$154.3
Total Debt /
Total Capitalization
0.39
25.0% 8.4%
30.0%
8.3%
35.0%
8.2%
40.0%
8.1%
45.0% 8.0%
54.5%
77.0%
30.1%
36.4%
18.9%
unit/ share amounts,
43.4%
36.4%
27.1%
0.39
25.0%
8.7%
30.0% 8.6%
35.0% 8.5%
40.0% 8.4%
45.0% 8.3%
Adjusted
Beta
1
0.85
1.05
0.59
0.74
0.59
Supply-Side MRP WACC Sensitivity
Debt / Total Cap
0.44
8.6%
8.6%
8.5%
8.4%
8.3%
0.77
0.74
0.64
0.49
8.9%
8.8%
8.7%
8.6%
8.5%
Historical MRP WACC Sensitivity
Debt / Total Cap
0.44
9.1%
9.0%
8.9%
8.8%
8.7%
0.49
9.4%
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
Unlevered
2
Beta
9.3%
9.2%
9.1%
9.0%
0.44
0.31
0.44
0.51
0.50
0.44
0.44
0.51
0.54
9.2%
9.1%
9.0%
8.9%
8.8%
0.54
9.7%
9.6%
9.5%
9.4%
9.3%
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