ABC

Leveraged Buyout Analysis of ABC

6/28/19
11:35 PM
Leveraged Buyout Analysis of ABC
Drivers Transaction Date: 12/31/06
(Dollars in millions, Except Per Share Data)

Case: 3
Method: 2

TKR: BOL
Date: 8/8/2006
Mid-Year Convention 0 1=Yes

Method 1 Method 2 Method 3

Premium to Market Bid Price EBITDA Multiple
Current Stock Price $46.03 Current Stock Price $46.03 Current Stock Price $46.03
Premium to Market 25.0% Premium to Market 26.0% Premium to Market (0.5%)
Bid Price $57.54 Bid Price $58.00 Bid Price $45.80
Shares Outstanding 53.769 Shares Outstanding 53.769 Shares Outstanding 53.769
Options 1.600 Options 1.600 Options 1.600
Diluted Shares 55.369 Diluted Shares 55.369 Diluted Shares 55.369
Offer Value $3,185.8 Offer Value $3,211.4 Offer Value $2,535.9
Cash 248.2 Cash 248.2 Cash 248.2
Debt 536.3 Debt 536.3 Debt 536.3
Minority Interest 16.4 Minority Interest 16.4 Minority Interest 16.4
Transaction Value $3,490.3 Transaction Value $3,515.9 Transaction Value $2,824.0
LTM 12/31/06 EBITDA 353.0 LTM 12/31/06 EBITDA 353.0 LTM 12/31/06 EBITDA 353.0
TV/EBITDA 9.9x TV/EBITDA 10.0x TV/EBITDA 8.0x
Leveraged Buyout Analysis of ABC
Sources & Uses Transaction Date: 12/31/06
(Dollars in millions, Except Per Share Data)
Debt /
Sources: Min/Max Amount Percent EBITDA Maturity Int. Rates Points Unused Fee Fees
Existing Cash 198.2 $50.0 $198.2 Err:522
Revolver 250.0 Err:522 Err:522 Err:522 5 L + 225bps 1.75% 0.50% Err:522
Term Loan B 1,400.0 Err:522 3.5 6 L + 225bps 1.75% 24.5
Senior Unsecured 300.0 Err:522 0.7 8 8.75% 3.25% 9.8
Sr. Subordinated Debt 750.0 Err:522 1.9 10 10.25% 3.50% 26.3
Sponsor Equity Err:522 30.0% Err:522
Total Sources: Err:522 Err:522

Uses: LTM 6/30/06 EBITDA: $404.0

Purchase of Equity @ $58.00 per share $3,211.4
Refinanced Debt 279.8
Refinanced Convertible 157.0
Convertible Premium 20.6
Financing Fees Err:522
Transaction Expenses @ 15.0
Rollover Equity 0.0
Tender Premium 2.2
Total Uses: Err:522

Goodwill Calculation:
Purchase Equity $3,211.4
Existing Goodwill 801.3
Non-Financing Transaction Expenses 15.0
Less: Book Value (1,468.5)
Goodwill $2,559.2
Leveraged Buyout Analysis of ABC
Opening Balance Sheet Transaction Date: 12/31/06
(Dollars in millions, Except Per Share Data)
9/30/05 Adjustments 6/30/06
Assets:
Cash & Cash Equivalents $248.2 ($198.2) $50.0
Accounts Receivables 510.4 510.4
Inventories 230.3 230.3
Other Current Assets 189.3 189.3
Property, Plant and Equip 660.9 660.9
Goodwill 801.3 (801.3) 2,559.2 2,559.2
Other Intangibles 196.6 196.6
Other Assets 120.1 120.1
Deferred Financing Fees 0.0 Err:522 Err:522
Total Assets $2,957.1 (999.5) $2,559.2 Err:522

Liabilities & Stockholder's Equity

Current portion of LT Debt $51.1 ($51.1) $0.0
Accounts Payable 86.9 86.9
Other Current Liabilities 672.5 672.5
Existing Convertibles due 2023 157.0 (157.0) 0.0
Existing Notes due 2028 99.5 99.5
Other Existing LT Debt 228.7 (228.7) 0.0
Revolver 0.0 Err:522 Err:522
Term Loan A 0.0 0.0
Term Loan B 0.0 1,400.0 1,400.0
Senior Unsecured 0.0 300.0 300.0
Sr. Subordinated Debt 0.0 750.0 750.0
Other LT Liabilities 176.5 176.5
Minority Interest 16.4 16.4
Total Liabilities 1,488.6 (436.8) Err:522 Err:522
Stockholder's Equity 1,468.5 (1,491.3) Err:522 Err:522
Total Liabilities & Stockholder's Equity $2,957.1 (1,928.1) Err:522 Err:522

Check 0.00000 Err:522

Leveraged Buyout Analysis of ABC
Income Statement Transaction Date: 12/31/06
(Dollars in millions, Except Per Share Data)
Year Ending December 31,
2006 2007 2008 2009 2010 2011 2012 2013
Revenues $2,454.0 $2,572.0 $2,702.0 $2,840.0 $2,968.0 $3,116.4 $3,272.2 $3,435.8
% Growth 1.9% 4.8% 5.1% 5.1% 5.0% 5.0% 5.0% 5.0%
COGS 1,045.0 1,079.0 1,123.0 1,170.0 1,212.0 1,121.9 1,178.0 1,236.9
Gross Margin 1,409.0 1,493.0 1,579.0 Err:522 Err:522 1,994.5 2,094.2 2,198.9
% Margin 57.4% 58.0% 58.4% Err:522 Err:522 64.0% 64.0% 64.0%
SG&A 988.0 997.0 1,030.0 1,069.0 1,102.0 1,153.1 1,210.7 1,271.3
% of Sales 40.3% 38.8% 38.1% 37.6% 37.1% 37.0% 37.0% 37.0%
R&D 194.0 206.0 216.0 230.0 243.0 258.7 271.6 285.2
% of Sales 7.9% 8.0% 8.0% 8.1% 8.2% 8.3% 8.3% 8.3%
Operating Income 227.0 290.0 333.0 Err:522 Err:522 582.8 611.9 642.5
% Margin 9.3% 11.3% 12.3% Err:522 Err:522 18.7% 18.7% 18.7%
D&A 126.0 126.0 126.0 127.0 127.0 134.0 140.7 147.7
% of Sales 5.1% 4.9% 4.7% 4.5% 4.3% 4.3% 4.3% 4.3%
EBITDA 353.0 416.0 459.0 Err:522 Err:522 716.8 752.6 790.2
Coupon:
Interest Income @ 4.50% (2.3) Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Interest Expense:
Existing Notes due 2028 7.13% 7.1 7.1 7.1 7.1 7.1 7.1 7.1 7.1
Revolver L + 225bps Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Term Loan B L + 225bps 108.6 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Senior Unsecured 8.75% 26.3 26.3 26.3 26.3 26.3 26.3 26.3 26.3
Sr. Subordinated Debt 10.25% 76.9 76.9 76.9 76.9 76.9 76.9 76.9 76.9
Amortization of Deferred Financing Fees Err:522 Err:522 Err:522 Err:522 Err:522 7.9 3.8 3.8
Total Interest Expense Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
(Gain)/Loss on Currency 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Pretax Income Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Taxes Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Tax Rate 31.0% 31.0% 31.0% 31.0% 31.0% 31.0% 31.0% 31.0%
Minority Interest 13.0 13.0 13.0 14.0 14.0 14.0 14.0 14.0
Net Income Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522

Interest Rates:
LIBOR 5.508% 5.766% 5.660% 5.647% 5.647% 5.647% 5.647% 5.647%
Existing Notes due 2028 7.130% 7.130% 7.130% 7.130% 7.130% 7.130% 7.130% 7.130%
Revolver Unused Fee 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500%
Revolver 7.758% 8.016% 7.910% 7.897% 7.897% 7.897% 7.897% 7.897%
Term Loan A 7.758% 8.016% 7.910% 7.897% 7.897% 7.897% 7.897% 7.897%
Term Loan B 7.758% 8.016% 7.910% 7.897% 7.897% 7.897% 7.897% 7.897%
Senior Unsecured 8.750% 8.750% 8.750% 8.750% 8.750% 8.750% 8.750% 8.750%
Sr. Subordinated Debt 10.250% 10.250% 10.250% 10.250% 10.250% 10.250% 10.250% 10.250%

Operating Statistics:
Days Sales Outstanding 76.0 76.0 76.0 76.0 76.0 76.0 76.0 76.0
Days Inventory Held 89.0 89.0 89.0 89.0 89.0 89.0 89.0 89.0
Days Payable Outstanding 33.0 33.0 33.0 33.0 33.0 33.0 33.0 33.0
Other Current Assets as % of Sales 7.9% 7.9% 7.9% 7.9% 7.9% 7.9% 7.9% 7.9%
Other Current Liabilities as % of Sales 27.9% 27.9% 27.9% 27.9% 27.9% 27.9% 27.9% 27.9%
Leveraged Buyout Analysis of ABC
Balance Sheet Transaction Date: 12/31/06
(Dollars in millions, Except Per Share Data)
Year Ending December 31,
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Assets:
Cash & Cash Equivalents $50.0 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Accounts Receivables 510.4 535.5 562.6 591.3 618.0 648.9 681.3 715.4 751.2 788.7
Inventories 230.3 263.1 273.8 285.3 295.5 273.6 287.2 301.6 316.7 332.5
Other Current Assets 189.3 202.2 212.4 223.3 233.3 245.0 257.2 270.1 283.6 297.8
Property, Plant and Equip 660.9 682.4 701.0 717.1 733.2 749.3 765.4 781.5 797.6 813.7
Goodwill 2,559.2 2,559.2 2,559.2 2,559.2 2,559.2 2,559.2 2,559.2 2,559.2 2,559.2 2,559.2
Other Intangibles 196.6 175.1 156.5 140.4 124.3 108.2 92.1 76.0 59.9 43.8
Other Assets 120.1 120.1 120.1 120.1 120.1 120.1 120.1 120.1 120.1 120.1
Deferred Financing Fees Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Total Assets Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522

Liabilities & Stockholder's Equity

Current portion of LT Debt 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Accounts Payable $86.9 $97.6 $101.5 $105.8 $109.6 $101.4 $106.5 $111.8 117.4 123.3
Other Current Liabilities 672.5 718.3 754.6 793.1 828.9 870.3 913.9 959.5 1,007.5 1,057.9
Existing Convertibles due 2023 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Existing Notes due 2028 99.5 99.5 99.5 99.5 99.5 99.5 99.5 99.5 99.5 99.5
Other Existing LT Debt 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Revolver Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Term Loan A 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Term Loan B 1,400.0 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Senior Unsecured 300.0 300.0 300.0 300.0 300.0 300.0 300.0 300.0 0.0 0.0
Sr. Subordinated Debt 750.0 750.0 750.0 750.0 750.0 750.0 750.0 750.0 750.0 750.0
Other LT Liabilities 176.5 176.5 176.5 176.5 176.5 176.5 176.5 176.5 176.5 176.5
Minority Interest 16.4 16.4 16.4 16.4 16.4 16.4 16.4 16.4 16.4 16.4
Total Liabilities Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Stockholder's Equity Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Total Liabilities & Stockholder's Equity Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Check Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Working Capital 170.6 185.0 192.7 201.0 208.4 195.7 205.5 215.7 226.5 237.8

Leveraged Buyout Analysis of ABC

Cash Flow Statement
(Dollars in millions, Except Per Share Data)
Year Ending December 31,
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Net Income Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Depreciation 104.5 104.5 107.4 110.9 110.9 117.9 124.6 131.6 139.0 146.8
Amortization of Intangibles 21.5 21.5 18.6 16.1 16.1 16.1 16.1 16.1 16.1 16.1
Amortization of Deferred Financing Fees Err:522 Err:522 Err:522 Err:522 Err:522 7.9 3.8 3.8 2.6 2.6
Change in Working Capital 0.0 (14.4) (7.7) (8.3) (7.4) 12.7 (9.8) (10.3) (10.8) (11.3)
Cash Provided by Operations Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Capital Expenditures (126.0) (126.0) (126.0) (127.0) (127.0) (134.0) (140.7) (147.7) (155.1) (162.9)
Cash Provided By Investments (126.0) (126.0) (126.0) (127.0) (127.0) (134.0) (140.7) (147.7) (155.1) (162.9)
Dividends 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Cash Provided by Financing 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Free Cash Flow Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Beginning Cash Balance 50.0 50.0 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Minimum Cash Balance 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0
Cash Available for Debt Paydown Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Required Amortization
Revolver Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Term Loan A 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Term Loan B (14.0) (14.0) Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Senior Unsecured 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (300.0) 0.0
Sr. Subordinated Debt 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Total Required Payments Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Cash Available for Debt Paydown Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Borrowing/(Payment) of Debt:
Revolver Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Term Loan A 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Term Loan B Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Senior Unsecured 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Sr. Subordinated Debt 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Total Borrowings/(Payments) Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Cash After Debt Paydown Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Minimum Cash Balance 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0 50.0
Ending Cash Balance Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Leveraged Buyout Analysis of ABC
Financial Ratios Transaction Date: 12/31/06
(Dollars in millions, Except Per Share Data)
Year Ending December 31,
2005 6/30/06 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Capitalization:
Bank Debt Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Senior Unsecured 300.0 300.0 300.0 300.0 300.0 300.0 300.0 300.0 300.0 0.0 0.0
Sr. Subordinated Debt 750.0 750.0 750.0 750.0 750.0 750.0 750.0 750.0 750.0 750.0 750.0
Existing Convertibles due 2023 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Existing Notes due 2028 99.5 99.5 99.5 99.5 99.5 99.5 99.5 99.5 99.5 99.5 99.5
Total Debt Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Minority Interest 16.4 16.4 16.4 16.4 16.4 16.4 16.4 16.4 16.4 16.4 16.4
Less: Cash 50.0 50.0 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Net Debt Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Book Equity Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Total Capitalization Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522

Coverage Ratios:
Total Interest Expense Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Net Interest Expense Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Cash Interest Expense Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522

EBITDA $404.0 $353.0 $416.0 $459.0 Err:522 Err:522 $716.8 $752.6 $790.2 $829.8 $871.2
vs. Total Interest Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
vs. Net Interest Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
vs. Cash Interest Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522

CapEx (126.0) (126.0) (126.0) (126.0) (127.0) (127.0) (134.0) (140.7) (147.7) (155.1) (162.9)
EBITDA - CapEx
vs. Total Interest Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
vs. Net Interest Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
vs. Cash Interest Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522

Leverage Ratios:
Total Debt / Total Capitalization Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Net Debt / Total Capitalization Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522

Total Debt / Equity Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Net Debt / Equity Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522

Bank Debt / EBITDA Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Senior Debt / EBITDA Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Subordinated Debt / EBITDA 2.8 3.3 2.8 2.5 Err:522 Err:522 1.6 1.5 1.5 1.0 1.0
Total Debt / EBITDA Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Net Debt / EBITDA Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522

Cumulative Bank Debt Paydown 0.0% Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Leveraged Buyout Analysis of ABC
Return Analysis - EBITDA Exit Multiple Method Transaction Date: 12/31/06
(Dollars in millions, Except Per Share Data)

Initial Equity Investment Err:522

Year Ending December 31,

2007 2008 2009 2010 2011 2012 2013
EBITDA $416.0 $459.0 Err:522 Err:522 $716.8 $752.6 $790.2

Implied Enterprise Value @ EBITDA Multiple of:

8.00x 3,328.0 3,672.0 Err:522 Err:522 5,734.2 6,020.9 6,321.9
9.00 3,744.0 4,131.0 Err:522 Err:522 6,450.9 6,773.5 7,112.2
10.00 4,160.0 4,590.0 Err:522 Err:522 7,167.7 7,526.1 7,902.4

Less:
Net Debt Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Minority Interest (16.4) (16.4) (16.4) (16.4) (16.4) (16.4) (16.4)

Implied Equity Value @ EBITDA Multiple of:

8.00x Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
9.00 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
10.00 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522

Equity Return @ EBITDA Multiple of: 1.5 2.5 3.5 4.5 5.5 6.5 7.5
8.00x NM NM NM NM NM NM NM
9.00 NM NM NM NM NM NM NM
10.00 NM NM NM NM NM NM NM
Current Price: $58.00

Number of Options WAEP Proceeds TSM Shares

3.171 $34.36 $109.0 1.292
0.867 44.07 38.2 0.208
1.269 53.48 67.9 0.099
0.717 61.61 44.2 0.000
0.497 72.97 36.3 0.000
Total: 1.600
 LTM 12/31/06
EBITDA PF EBITDA: 404.0
Amount Multiple %
Existing Cash $198.2 0.5x Err:522
Revolver Err:522 Err:522 Err:522
Term Loan B 1,400.0 3.5 Err:522
Senior Unsecured 300.0 0.7 Err:522
Sr. Subordinated Debt 750.0 1.9 Err:522
Sponsor Equity Err:522 Err:522 Err:522
Total Sources Err:522 Err:522 Err:522

LTM 12/31/06
EBITDA
Amount Multiple %
Purchase of Equity $3,211.4 7.9x Err:522
Refinanced Debt 279.8 0.7 Err:522
Refinanced Convertible 157.0 0.4 Err:522
Convertible Premium 20.6 0.1 Err:522
Financing Fees Err:522 Err:522 Err:522
Transaction Expenses 15.0 0.0 Err:522
Tender Premium 2.2 0.0 Err:522
Total Uses Err:522 Err:522 Err:522
Public Market Overview
(Dollars in Millions)

Ticker BOL
Date 8/8/2006
($ in millions, except per share data)
Market Price as of 08/08/06 $46.03
52-Week High 7/5/05 $87.50
52-Week High 5/4/06 $41.19
Market Value $2,549
Market Cap $2,853
5-Year EPS Growth Rate 10.0%
Trading Multiples
Year Revenue EBITDA P/E PEG
2006E 1.16x 8.1x 19.2x 1.92x
2007E 1.11 6.9 13.9 1.39
2008E 1.06 6.2 8.2 0.82

Calendar Year
Year Revenue EBITDA EPS
2006E $2,454 $353 $2.40
2007E 2,572 416 3.30
2008E 2,702 459 5.64

LTM EBITDA 404

LTM EBITDA Mult 7.1
 Year Ending December 31,
2006 2007 2008 2009 2010 2011 Amount Term (years) Rate Assumed
Revolver Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 $250mm Revolver Err:522 5 L + 225bps
Term Loan B 1,400.0 Err:522 Err:522 Err:522 Err:522 Err:522 Term Loan B 1,400.0 6 L + 225bps
Total Senior Debt Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Bank Debt Err:522
Senior Unsecured 300.0 300.0 300.0 300.0 300.0 300.0 Senior Unsecured 300.0 8 8.75%
Sr. Subordinated Debt 750.0 750.0 750.0 750.0 750.0 750.0 Sr. Subordinated Debt 750.0 10 10.25%
Existing Notes due 2028 99.5 99.5 99.5 99.5 99.5 99.5 Existing Notes due 2028 99.5 30 7.13%
Total Debt Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Total Debt Err:522
Book Equity Err:522
Cumulative Bank Debt Paydown Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Total Capitalization Err:522

Credit Ratios: Total Debt / EBITDA Err:522

Bank Debt to EBITDA Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Total Debt / Total Capitalization Err:522
Senior Debt to EBITDA Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Total Debt to EBITDA Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
EBITDA / Total Interest Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
EBITDA - CapEx / Total Interest Err:522 Err:522 Err:522 Err:522 Err:522 Err:522

Year Ending December 31,

2006 2007 2008 2009 2010 2011
Net Income Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Depreciation 104.5 104.5 107.4 110.9 110.9 117.9
Amortization Err:522 Err:522 Err:522 Err:522 Err:522 24.0
Change in Working Capital 0.0 (14.4) (7.7) (8.3) (7.4) 12.7
Cash Flow from Operations Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Capital Expenditures (126.0) (126.0) (126.0) (127.0) (127.0) (134.0)
Cash Available for Debt Repayment Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
 Year Ending December 31, 6/30/06 - 2011
2006 2007 2008 2009 2010 2011 CAGR

Revenues $2,454.0 $2,572.0 $2,702.0 $2,840.0 $2,968.0 $3,116.4 4.6%

% Growth -- 4.8% 5.1% 5.1% 4.5% 5.0%

EBITDA 353.0 416.0 459.0 Err:522 Err:522 716.8 11.0%

% Margin 14.4% 16.2% 17.0% Err:522 Err:522 23.0%

EBIT 227.0 290.0 333.0 Err:522 Err:522 582.8 14.4%

% Margin 9.3% 11.3% 12.3% Err:522 Err:522 18.7%

Less: Interest Expense, net Err:522 Err:522 Err:522 Err:522 Err:522 Err:522

Pretax Income Err:522 Err:522 Err:522 Err:522 Err:522 Err:522

Net Income Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522

Current Price: $46.03

EBITDA: $404.0 $353.0

Initial PF EBITDA Purchase 2011 Pretax Rate of Return

Bid Price Premium Transaction Sponsor Equity Multiple LTM EBITDA Exit Multiple
Per Share Paid (1) Value (2) Investment LTM 6/30/06 FY2006 8.00x 9.00x 10.00x

$54.00 17.3% Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522

$56.00 21.7% Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
$58.00 26.0% 3,515.9 Err:522 8.7 10.0 NM NM NM
$60.00 30.3% Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
$62.00 34.7% Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522