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%
16.0%
Discount
rate (%)
13.0%
14.5%
16.0%
2.0%
Source:
Note:
(1)
$57
569.476
$0.10
$52
569.191
$0.09
$47
569.052
$0.08
2.0%
$0.99
$0.10
$1.09
$0.81
$0.09
$0.90
2022A
$0.67
$0.08
$0.75
Perpetuity growth rate
3.0%
$57
569.635
$0.10
$52
569.230
$0.09
$47
569.092
$0.08
$1.06
$0.10
$1.16
$601
$0.86
$0.09
$0.95
$0.70
$0.08
$0.79
2023E
($119)
Reconciliation to total equity value per share
Perpetuity growth rate
3.0%
29%
$12
$601
$601
$119
$119
569.907
$0.10
$52
569.289
$0.09
$47
569.133
$0.08
($104)
29%
$12
$0.74
$0.08
$0.83
$601
$601
$119
$104
$224
2025E
($64)
29%
$12
$601
4.0%
$57 Implied net present value
Fully diluted shares(1)
Implied net present value per share
$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
4.0%
$1.15 Equity value per share standalone DCF
$0.10 Net present value per share - tax benefits
$1.25 Implied total equity value per share
$0.91 Equity value per share - standalone DCF
$0.09 Net present value per share - tax benefits
$1.01 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 3/22/23 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)
Implied net present value of tax benefits assumes NOLs are fully
utilized by 2055 (taking into account NOL expiration) per Bravo
management
($1)
($12)
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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