Credit Suisse Investment Banking Pitch Book
Tax benefit analysis - including S382 limitation
Including $200m convertible notes issuance
Calendar year ended
2028E
2024E
$83
($ in millions, except per share amounts)
EBIT
Tax shielding
NOLS used
% tax rate
Annual savings
Limitation on pre-tax income for NOL usage
NOL S382 usage limit
Existing NOL schedule
NOL starting balance
NOLS expired
NOL usage
NOL ending balance
Post-2022 NOL schedule
NOL starting balance
NOLS generated
NOL usage
NOL ending balance
Sensitivities
Discount
rate (%)
13.0%
14.5%
(1)
16.0%
Discount
rate (%)
13.0%
14.5%
16.0%
Source:
Note:
2.0%
$57
594.916
$0.10
$52
594.386
$0.09
$47
593.798
$0.08
2.0%
$0.95
$0.10
$1.04
$0.77
$0.09
$0.86
2022A
$0.64
$0.08
$0.72
Perpetuity growth rate
3.0%
$57
595.078
$0.10
$52
594.549
$0.09
$47
593.965
$0.08
$1.02
$0.10
$1.11
$601
$0.82
$0.09
$0.91
Reconciliation to total equity value per share
Perpetuity growth rate
3.0%
$0.67
$0.08
$0.75
2023E
($119)
29%
$12
$601
$601
$119
$119
4.0%
$57
595.253
$0.10
$52
594.721
$0.09
$47
594.141
$0.08
($104)
29%
$0.71
$0.08
$0.79
$12
$601
$601
$119
$104
$224
2025E
($64)
29%
$12
$601
$601
$224
$64
$288
Implied net present value
Fully diluted shares(1)
Implied net present value per share
Implied net present value
Fully diluted shares(1)
Implied net present value per share
Implied net present value
Fully diluted shares(1)
Implied net present value per share
4.0%
$1.10 Equity value per share standalone DCF
$0.10 Net present value per share - tax benefits
$1.20 Implied total equity value per share
$0.88 Equity value per share standalone DCF
$0.09 Net present value per share - tax benefits
$0.96 Implied total equity value per share
Equity value per share standalone DCF
Net present value per share - tax benefits
Implied total equity value per share
2026E
($13)
29%
$12
$601
$601
$288
$13
$301
2027E
■
■
■
$59
■
59
29%
$17
$47
$12
$601
($12)
$589
$301
($47)
$254
Assumptions
79
29%
-
$22
$67
$12
$589
($12)
$577
$254
($67)
$187
2029E
$110
100
29%
$28
$88
$12
$577
($12)
$565
$187
($88)
$99
2030E
$136
111
29%
$32
$109
$12
$565
($12)
$552
$99
($99)
DCF discounted to 12/31/2022
Mid-year discounting convention
2031 E
$163
12
29%
$3
$130
$12
$552
Company filings, Bravo management, IRS bulletin as of 2/23.
Per Bravo management, assumes $200m convertible PIPE with $180m net proceeds, conversion price based on closing price as of 3/14/23 at no conversion premium, 12% PIK rate. Assumes conversion at end
of 5-year term.
Based on fully diluted shares derived from discounted cash flow analysis including $200m convertible notes issuance and excluding tax benefits.
($12)
$540
2032E
$188
12
29%
$3
$151
$12
$540
($0)
($12)
$528
2033E
$902
$170
12
29%
$3
$528
$12
Limitation on pre-tax income for NOL usage is equal to 80% of
pre-tax income
$516
Assumes beginning tax asset balance of $600.7m as of 12/31/22
per Bravo management ($589.0m federal and state NOLs and
$11.7m R&D tax credits)
($1)
($12)
Implied net present value of tax benefits assumes NOLs are fully
utilized by 2055 (taking into account NOL expiration) per Bravo
management
Assumes unlevered free cash flow projections discounted using
assumed 13.0%-16.0% WACC
Assumes tax rate of 29.0% per Bravo management
NOL S382 limitation based on merger consideration of $1.40 and
long-term tax-exempt rate of 3.29%
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