Illustrative LBO Analysis

Blank LBO Template

x Transaction Assumptions
($ in millions, except where otherwise specified)

Sources & Uses Transaction Assumptions

Sources $ % LTM Adj. EBITDA

Cash On-Hand -- -- Illustrative Transaction Multiple
Revolver Draw -- -- Transaction Value
Term Loan B -- ( - ) Debt
Senior Notes -- ( + ) Cash
Subordinated Notes -- Equity Value
Management Rollover --
Sponsor Equity -- Memo: Management Rollover
Total Sources -- -- Management Rollover - %
Management Rollover - $
Uses $ %
Purchase Equity --
Refinance Existing Debt -- -- Purchase Accounting
Refinancing Expenses -- --
Fund Cash Balance -- -- Total Equity Value
Transaction Expenses -- ( - ) Total Assets (excl. goodwill)
Financing Fees -- ( + ) Total Liabilities
Total Uses -- -- PF Goodwill
CHECK: 1

Other Assumptions CHECKS

Minimum Cash Balance $5 Balance Sheet:

Minimum Debt Increment 25 Sources & Uses:
Transaction Expenses 15
Cash Interest Rate 0.250%
Illustrative Tax Rate 35.0%

CIRC On

x PF Income Statement
($ in millions, except where otherwise specified)

Fiscal Year Ending December 31, 2015A 2016A 2017E 2018E 2019E
Revenue $327 $342
% Growth 4.6% (100.0%) -- --

Adj. EBITDA $85 $90

% Margin 26.0% 26.3% -- -- --
% Growth 5.9% (100.0%) -- --
 ( - ) D&A ($15) ($17)
Adj. EBIT $70 $73
% Margin 21.4% 21.3% -- -- --
% Growth 4.3% (100.0%) -- --

( - ) Net Interest Expense On

Adj. EBT

( - ) Illustrative Tax Expense

Adj. Net Income
% Margin -- -- -- -- --
% Growth -- -- -- --

Memo:
Revenue Growth (%) 4.6% 5.0% 6.0% 7.0%
COGS (% of Sales) 40.0% 40.0% 40.0% 40.0% 40.0%
EBITDA Margin (%) 26.0% 26.3% 26.3% 26.3% 26.3%
D&A (% of Sales) 4.6% 5.0% 5.0% 5.0% 5.0%
CapEx (% of Sales) 5.2% 5.0% 5.0% 5.0% 5.0%

x PF Working Capital Schedule

($ in millions, except where otherwise specified)

Fiscal Year Ending December 31, 2016A 2017E 2018E 2019E

Memo:
Sales
COGS
Days
Key Assumptions 360
Days Sales Outstanding (DSO)
Days Inventory Held (DIH)
Days Payable Outstanding (DPO)
Cash Conversion Cycle

Other Current Assets (% of Sales)

Accrued Expenses (% of Sales)
Other Current Liabilities (% of Sales)

Calculated NWC
Net Accounts Receivable
Inventory
Other Current Assets
Current Assets

Accounts Payable
Accrued Expenses
Other Current Liablities
 Current Liabilities

Net Working Capital (NWC)

(Increase) Decrease in NWC

x PF Balance Sheet
($ in millions, except where otherwise specified)

Fiscal Year Ending December 31, 2016A PF 2016 2017E 2018E 2019E
Assets
Cash $5
Net Accounts Receivable 90
Inventory 45
Other Current Assets 7
Total Current Assets $147
Net PP&E 78
Goodwill 20
Other Noncurrent Assets 6
Total Assets $251

Liabilities & Shareholders' Equity

Accounts Payable $44
Accrued Expenses 37
Other Current Liabilities 3
Total Current Liabilities $84

Total Debt --
Other Noncurrent Liabilities 7
Total Liabilities $91

Shareholders' Equity $160

Total Liabilities & Shareholders' Equity $251
CHECK: 1 1 1 1 1

x PF Statement of Cash Flows

($ in millions, except where otherwise specified)

Fiscal Year Ending December 31, 2015A 2016A 2017E 2018E 2019E
Cash from Operating Activities
Net Income
( + ) D&A
( + ) Noncash Interest Expense
( + / - ) Change in NWC
Cash from Operating Activities
( - ) CapEx (17) (17)
Levered Free Cash Flow

Beginning Cash Balance

( + ) Levered Free Cash Flow
 ( - ) Minimum Cash Balance
Total Cash Available for Debt Repayment

( - ) Mandatory Amortization
( - ) Optional Prepayment

( + ) Minimum Cash Balance

Ending Cash Balance

Memo:
Average Cash Balance
Cash Interest Income 0.250%

x PF Debt Schedule
($ in millions, except where otherwise specified)

Fiscal Year Ending December 31, PF 2016 2017E 2018E 2019E

Ending Debt Balance

Revolver
Term Loan B
Senior Notes
Subordinated Notes
Total
% of Original -- -- --

Memo:
Undrawn Revolver Commitment $100

Cash Available for Debt Repayment

Mandatory Amortization Schedule

Revolver -- -- --
Term Loan B 1.0% 1.0% 1.0%
Senior Notes -- -- --
Subordinated Notes -- -- --

Mandatory Amortization
Revolver
Term Loan B
Senior Notes
Subordinated Notes
Total

Cash Available for Optional Prepayment

Optional Prepayment
Revolver
Term Loan B
Senior Notes
Subordinated Notes
 Total

x PF Interest Expense
($ in millions, except where otherwise specified)

Fiscal Year Ending December 31, 2017E 2018E 2019E

LIBOR 0.500% 1.100% 1.500%

Debt Balance
Undrawn Revolver
Revolver
Term Loan B
Senior Notes
Subordinated Notes

Interest Rate Schedule Type Rate

Undrawn Revolver FIXED 0.350%
Revolver FLOAT L+2.000%
Term Loan B FLOAT L+3.000%
Senior Notes FIXED 7.000%
Subordinated Notes FIXED 8.500%

Interest Expense
Undrawn Revolver
Revolver
Term Loan B
Senior Notes
Subordinated Notes
Total

PIK Interest Expense Years PIK

Senior Notes 0 yr
Subordinated Notes 3 yr
Total

Financing Fee Amortization Fee Term

Revolver -- 5 yr
Term Loan B -- 6 yr
Senior Notes -- 8 yr
Subordinated Notes -- 10 yr
Total

Net Interest Expense

Interest Expense
( + ) Financing Fee Amortization
Total Interest Expense
( - ) Interest Income
Net Interest Expense

Noncash Interest Expense

 PIK Interest Expense
( + ) Financing Fee Amortization
Total Noncash Interest Expense

x PF Credit Metrics
($ in millions, except where otherwise specified)

Fiscal Year Ending December 31, PF 2016 2017E 2018E 2019E

Outstanding Debt
Senior Secured Debt
Senior Debt
Total Debt

Line Items
Adj. EBITDA
Cash Interest Expense
CapEx

Leverage
Senior Secured Debt / Adj. EBITDA
Senior Debt / Adj. EBITDA
Total Debt / Adj. EBITDA

Interest Coverage
Adj. EBITDA / Cash Interest Expense
Adj. EBITDA - CapEx / Cash Interest Expense

x Illustrative Returns
($ in millions, except where otherwise specified)

Fiscal Year Ending December 31, PF 2016 2017E 2018E 2019E

LTM Adj. EBITDA

Total Debt
( - ) Cash
Net Debt

Enterprise Value
(Based on Multiple of LTM Adj. EBITDA)

7.0x
7.5x
8.0x
8.5x
 9.0x
9.5x
10.0x
10.5x
11.0x

Total Equity Value

(Based on Multiple of LTM Adj. EBITDA)

7.0x
7.5x
8.0x
8.5x
9.0x
9.5x
10.0x
10.5x
11.0x

MoIC Investment
(Based on Multiple of LTM Adj. EBITDA)

7.0x
7.5x
8.0x
8.5x
9.0x
9.5x
10.0x
10.5x
11.0x

IRR
(Based on Multiple of LTM Adj. EBITDA)

7.0x
7.5x
8.0x
8.5x
9.0x
9.5x
10.0x
10.5x
11.0x
 Financing Assumptions
Interest Interest Annual
Leverage Term Type Rate Amort.
9.0x Revolver NA 5 yr FLOAT L+2.000% NA
Term Loan B 3.0x 6 yr FLOAT L+3.000% 1.00%
Senior Notes 2.5x 8 yr FIXED 7.000% 0.00%
Subordinated Notes 1.0x 10 yr FIXED 8.500% 0.00%

Revolver Commitment: $100

Commitment Fee: 0.350%
10.0%

Debt Financing

$ Leverage Fees - $
Revolver
Term Loan B --
Senior Secured Debt --
Senior Notes --
Senior Debt --
Subordinated Notes --
Total --

1
1

2020E 2021E 2022E 2023E 2024E

-- -- -- -- --

-- -- -- -- --
-- -- -- -- --
 -- -- -- -- --
-- -- -- -- --

-- -- -- -- --
-- -- -- -- --

6.0% 5.0% 4.0% 4.0% 4.0%

40.0% 40.0% 40.0% 40.0% 40.0%
26.3% 26.3% 26.3% 26.3% 26.3%
5.0% 5.0% 5.0% 5.0% 5.0%
5.0% 5.0% 5.0% 5.0% 5.0%

2020E 2021E 2022E 2023E 2024E

2020E 2021E 2022E 2023E 2024E

1 1 1 1 1

2020E 2021E 2022E 2023E 2024E

2020E 2021E 2022E 2023E 2024E

-- -- -- -- --

-- -- -- -- --
1.0% 1.0% 1.0% 1.0% 1.0%
-- -- -- -- --
-- -- -- -- --
2020E 2021E 2022E 2023E 2024E

2.150% 2.500% 3.000% 3.000% 3.000%

2020E 2021E 2022E 2023E 2024E

2020E 2021E 2022E 2023E 2024E

 Financing
Years PIK Fees
NA 0.500%
NA 1.250%
0 yr 2.000%
3 yr 2.500%