LionTree Investment Banking Pitch Book
Pro Forma Discounted Cash Flow Accretion/(Dilution) Analysis - Series A Offer
WACC
8.75%
9.00%
9.25%
9.50%
9.75%
Saturn Status Quo DCF Equity Value / Share
2020E LTM Terminal EBITDA Multiple
7.25x
7.75x
7.00x
$30.91
30.55
30.20
29.84
29.50
$31.91
31.54
31.17
30.81
30.45
7.50x
LionTree Note:
$32.90
32.52
32.14
31.77
31.40
$33.89
33.50
33.12
32.73
32.35
Luna DCF Enterprise Value
Saturn DCF Enterprise Value
Synergy DCF Value
Combined Pro Forma Enterprise Value
Less: Pro Forma Net Debt (@3/31/2016)
Plus: Other¹
Combined Pro Forma Equity Value
Luna Pro Forma Fully Diluted Shares Outstanding
Implied Luna Pro Forma DCF Equity Value per Share
Saturn Series A Exchange Ratio
Implied Saturn Share of PF DCF Equity Value per Share
Implied Cash Per Share
Total Value of Offer to Saturn
Standalone Saturn DCF Equity Value per Share
Accretion / (Dilution)
8.00x
$34.87
34.47
34.08
33.69
33.31
3,193
4,467
951
8,610
(3,642)
598
5,566
230.5
$24.15
0.6784x
$16.38
$18.00
$34.38
$32.14
7.0%
Saturn Share of Pro Forma DCF Equity Value + Cash Per Share
2020E LTM Terminal EBITDA Multiple
Low
Mid
$33.75
$35.00
33.45
34.68
33.16
34.38
32.88
34.08
32.60
33.79
WACC
Low
Mid
High
WACC
Low
Mid
High
Low
$34.37
34.07
33.77
33.48
33.20
Accretion to Standalone DCF
9.2%
9.5%
9.8%
10.2%
10.5%
7.7%
8.0%
8.4%
8.7%
9.0%
Mid
6.4%
6.7%
7.0%
7.3%
7.6%
Source: Based on Saturn projections per Saturn management and Luna projections per Luna management, as reviewed by Saturn
$35.62
35.30
34.99
34.69
34.39
5.1%
5.4%
5.7%
6.0%
6.3%
High
$36.24
35.91
35.60
35.29
34.98
High
3.9%
4.2%
4.5%
4.7%
5.0%
1) Other includes the market value of Luna equity in affiliates and minority interest, excluding Luna's current equity investment in Saturn; also includes value of
Saturn investments
20View entire presentation