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
Risk-free Rate ³
Unlevered Beta
Debt Total Capitalization
Adjusted Levered Equity Beta
Market Risk Premium
Small Company Risk Premium
Equity Cost of Capital 5
Pre-Tax Cost of Debt 6
After-Tax Cost of Debt
4
WACC
4
Unit/Share Price
10/20/22
10.7%
$6.27
10.14
$22.10
4.5%
0.45
35.1%
0.63
Supply-Side MRP
6.2%
8.8%
1.69
87.47
14.00
2.3%
7.7%
5.4%
Market Equity
Value
$330.3
1,243.0
5,030.9
9,023.2
3,566.9
$446.4
Historical MRP
7.3%
11.3%
9.2%
Note: Capital structure includes effect of dilutive securities and GP interest; does not attribute value to the IDRs
Predicted raw betas from FactSet; Adjusted Equity Beta calculated as: (0.67) x Raw Beta + (0.33) × 1.0
Unlevered Beta calculated as: Adjusted Equity Beta x (E/(E + D x (1-T)); Assumes corporate tax rate of 29.6%
20-year Treasury as of October 20, 2022
17
Total Debt and
Preferred Equity
Mean
Median
Confidential - Preliminary and Subject to Change
($ in millions, except per unit/ share amounts,
$433.1
4,160.9
2,052.4
4,890.3
848.8
$154.3
Total Debt /
Total Capitalization
0.40
25.0% 8.7%
30.0% 8.6%
35.0% 8.5%
40.0% 8.4%
45.0% 8.3%
56.7%
77.0%
29.0%
35.1%
19.2%
0.40
9.1%
9.0%
43.4%
35.1%
25.7%
25.0%
30.0%
35.0% 8.9%
40.0% 8.8%
45.0% 8.7%
Adjuste d
Beta
1
0.86
1.05
0.60
0.74
0.59
Supply-Side MRP WACC Sensitivity
Debt / Total Cap
0.45
9.0%
8.9%
8.8%
8.7%
8.6%
0.77
0.74
0.63
0.50
9.3%
9.2%
9.1%
9.0%
8.9%
Historical MRP WACC Sensitivity
Debt / Total Cap
0.45
9.5%
9.3%
9.2%
9.1%
9.0%
Unlevered
Beta
2
0.50
9.8%
9.7%
9.6%
9.4%
9.3%
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
0.42
0.31
0.45
0.52
0.50
0.44
0.45
0.51
0.55
9.6%
9.5%
9.4%
9.3%
9.1%
0.55
10.1%
10.0%
9.9%
9.8%
9.6%
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