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Sources and uses of funds

Sources of funds
cash from balance sheet
new revolver
new senior term A
new senior term B
new senior term C
new sub debt
note to sellers
new preferred equity (PIK)
rollover of equity -sellers
new common stock

Amount ($)
0.0
13.3
40.0
0.0
0.0
0.0
0.0
46.0
0.4
3.6
103.2

Pro forma capital structure


Interest
rate

0.09
0.09
0
0
0.12
0.12
0.15

Users of funds

cash to owners
equity ownership
note to owners
excess cash
value to owners
repay debt
new cash infusion
buyer expenses

Amount ($)

95.0
5.0
0.0
0.0
100.0
0.0
0.0
3.25
103.3

PF capital structure
new revolver
new senior term A
new senior term B
new senior term C
new sub debt
note to sellers

Based on
market value

total debt

13.3
40.0
0.0
0.0
0.0
0.0
53.3

12.8%
38.8%
0.0%
0.0%
0.0%
0.0%
51.6%

new preferred equity (PIK)


rollover of equity -sellers
new common stock
total equity

46.0
0.4
3.6
50.0

44.6%
0.4%
3.5%
48.4%

total cap (incl. Cash)

103.2 100.0%

1998 x
EBITDA

1999 x
EBITDA

Equity ownership
Ownership
% of investment
Equity ownership
rollover equity - parent
equity investor
management ownership
sub debt
PIK warrants
total ownership

Common
0.4
3.6
0.7
0
0
4.7

Equity
preferred
4.6
41.4
0
0
0
46

Total
5.0
45.0
0.7
0
0
50.7

Common Preferred Common Warrants


8.5%
76.5%
15.0%
0%
0%
100%

10%
90%
0%
0%
0%
100%

8.5%
76.5%
15.0%
0.0%
0.0%
100.0%

0%
0%
0%
0%
0%
0%

PreOption
ownership
8.5%
76.5%
15.0%
0.0%
0.0%
100%

Perform Fully dil.


options ownership
0%
0%
0%
0%
0%
0%

8.5%
76.5%
15.0%
0.0%
0.0%
100.0%

Internal Rate of Return


Total Investor Return
Multiple of
EBITDA
6.00
7.00
8.00

Year 3
36.9%
45.2%
52.7%

Year 4
31.3%
36.7%
41.6%

Investor Investment Gain

Year 5

Year 3

$ 70.5
$ 92.8
$ 115.1

28.4%
32.3%
35.8%

Year 4

Management Coinvest Equity Value

Year 5

$ 88.7
$112.3
$135.9

$ 111.8
$ 137.2
$ 162.7

2000

2001

Year 3

##### ##
##### ##
##### ##

Year 4

$ 12.0
$ 16.6
$ 21.3

Year 5

$ 14.4
$ 19.4
$ 24.4

Income Statement Projections


1996
net revenues
$
% growth
EBITDA *
% of net revenue
EBITA *
% of net revenue
capital expenditures
net debt
total debt outstanding
EBITDA/total interest
EBITDA-capex/total interest
total debt/EBITDA
* before management fee

270.5
3.0
1.1%
0.3
0.1%
0.0

1997
$ 256.5 $
-5.2%
0.1
0.0%
-2.7
-1.1%
1.6

1998

1999

278.0 $
8.4%
17.1
6.2%
14.9
5.4%
2.3
53.3
53.3

3.1

300.0 $
7.9%
17.6
5.9%
14.4
4.8%
4.5
50.8
50.8
3.7
2.7
2.9

324.9 $
8.3%
23.5
7.2%
20.1
6.2%
4.5
46.5
46.5
5.1
4.2
2.0

349.9 $
7.7%
29.1
8.3%
25.5
7.3%
2.2
36.2
36.2
7.0
6.4
1.2

2002
374.4 $
7.0%
30.8
8.2%
27.3
7.3%
2.3
24.4
24.4
9.5
8.8
0.8

2003
400.6 $
7.0%
33.2
8.3%
29.2
7.3%
2.5
10.9
10.9
15.1
14.0
0.3

2004
428.6 $
7.0%
35.9
8.4%
31.3
7.3%
2.6
-4.6
0.0
36.7
34.1
0.0

2005

2006

2007

458.6 $
7.0%
39.0
8.5%
33.5
7.3%
2.8
-22.4
0.0

490.7 $
7.0%
42.8
8.7%
35.8
7.3%
3.0
-43.1
0.0

0.0

0.0

525.1
7.0%
45.3
8.6%
38.3
7.3%
3.2
-65.1
0.0

0.0

IRR - Year 3
Multiple

EBITDA

Enterprise
value

Equity value

1999

2000

Return
multiple

2001

IRR
145.0%
175.7%
200.7%

Investment
gain

Investor equity
6
7
8

$ 29.1
$ 29.1
$ 29.1

$ 174.8
$ 204.0
$ 233.1

$
$
$

68.7
97.8
126.9

$
$
$

(3.6)
(3.6)
(3.6)

0.00
0.00
0.00

0.00
0.00
0.00

$ 52.5
$ 74.8
$ 97.1

Preferred stock
$ (41.4)
$ (41.4)
$ (41.4)

0.00
0.00
0.00

0.00
0.00
0.00

$ 63.0
$ 63.0
$ 63.0

15.0%
15.0%
15.0%

Total Investor return


$ (45.0)
$ (45.0)
$ (45.0)

0.00
0.00
0.00

0.00
0.00
0.00

$ 115.5
$ 137.8
$ 160.1

36.9%
45.2%
52.7%

14.7
21.0
27.2

$ 49.0
$ 71.2
$ 93.5

1.5
1.5
1.5

$ 21.6
$ 21.6
$ 21.6

2.6
3.1
3.6

$ 70.5
$ 92.8
###### #####

IRR - Year 4
Multiple

EBITDA

Enterprise
value

Equity value

1999

2000

2001

2002

IRR

Return multiple

Investment
gain

Investor equity
6
7
8

$ 30.8
$ 30.8
$ 30.8

$ 185.0
$ 215.8
$ 246.6

$ 80.1
$ 110.9
$ 141.7

$ (3.6)
$ (3.6)
$ (3.6)

0.00
0.00
0.00

0.00
0.00
0.00

0.00
0.00
0.00

$ 61.3
$ 84.8
$108.4

103.5%
120.8%
134.8%

17.2
23.8
30.4

$ 57.7
$ 81.3
###### ###

Preferred stock
###################
###################
###################

0.00
0.00
0.00

0.00
0.00
0.00

0.00
0.00
0.00

$ 72.4
$ 72.4
$ 72.4

15.0%
15.0%
15.0%

1.7
1.7
1.7

$ 31.0
$ 31.0
$ 31.0

Total Investor return


###################
###################
###################

0.00
0.00
0.00

0.00
0.00
0.00

0.00
0.00
0.00

$133.7
$157.3
$180.8

31.3%
36.7%
41.6%

3.0
3.5
4.0

$ 88.7
###### ###
###### ###

IRR - Year 5
Multiple

EBITDA

Enterprise
value

Equity value

1999

2000

2001

2002

2003

IRR

Return
multiple

Investment
gain

Investor equity
6
7
8

$ 33.2
$ 33.2
$ 33.2

$ 199.4
$ 232.7
$ 265.9

$ 96.1
$ 129.3
$ 162.6

$ (3.6)
$ (3.6)
$ (3.6)

0.00
0.00
0.00

0.00
0.00
0.00

0.00
0.00
0.00

0.00
0.00
0.00

$ 73.5
$ 98.9
$ 124.4

83.1%
94.3%
103.4%

20.6
27.7
34.8

$ 69.9
$ 95.4
$ 120.8

Preferred stock
###################
###################
###################

0.00
0.00
0.00

0.00
0.00
0.00

0.00
0.00
0.00

0.00
0.00
0.00

$ 83.3
$ 83.3
$ 83.3

15.0%
15.0%
15.0%

2.0
2.0
2.0

$ 41.9
$ 41.9
$ 41.9

Total Investor return


###################
###################
###################

0.00
0.00
0.00

0.00
0.00
0.00

0.00
0.00
0.00

0.00
0.00
0.00

$ 156.8
$ 182.2
$ 207.6

28.4%
32.3%
35.8%

3.5
4.1
4.6

$ 111.8
$ 137.2
$ 162.7

Summary income statement


1996

Fiscal year ending


1997
1998

Projected 12 months ended December


1999
2000
2001
2002

2003

2004

2005

2006

2007

net sales
cost of sales
gross profit

270.5
247.6
22.9

256.5
243.4
13.1

278.0
244.0
34.0

300.0
267.0
33.0

324.9
287.2
37.7

349.9
308.6
41.3

374.4
330.2
44.2

400.6
353.3
47.3

428.6
378.0
50.6

458.6
404.5
54.1

490.7
432.8
57.9

525.1
463.1
62.0

selling expenses
unallocated use & corp overhead
G & A expenses
other, net
management fee
EBITA

10.6
2.5
8.7
0.8
0.0
0.3

5.4
2.0
7.3
1.1
0.0
(2.7)

9.9
2.7
5.5
1.0
0.0
14.9

9.6
2.7
7.2
(0.9)
0.2
14.4

9.1
2.9
6.5
(1.0)
0.2
20.1

8.4
3.1
5.6
(1.4)
0.2
25.5

9.0
3.4
6.0
(1.5)
0.2
27.3

9.6
3.6
6.4
(1.6)
0.2
29.2

10.3
3.9
6.9
(1.7)
0.2
31.3

11.0
4.1
7.3
(1.8)
0.2
33.5

11.8
4.4
7.9
(2.0)
0.2
35.8

12.6
4.7
8.4
(2.1)
0.2
38.3

depreciation on existing basis


depreciation on post acq capex
EBITDA

2.7
0.0
3.0

2.8
0.0
0.1

2.2
0.0
17.1

3.2
0.0
17.6

3.4
0.0
23.5

3.6
0.0
29.1

1.5
2.0
30.8

1.5
2.5
33.2

1.5
3.1
35.9

1.5
4.0
39.0

1.5
5.5
42.8

1.5
5.5
45.3

amortization of financing fees


total deprec. & amortiz.
EBIT

0.0
2.7
0.3

0.0
2.8
(2.7)

0.0
2.2
14.9

0.7
3.9
13.7

0.7
4.1
19.4

0.7
4.3
24.8

0.7
4.2
26.6

0.7
4.7
28.5

0.0
4.6
31.3

0.0
5.5
33.5

0.0
7.0
35.8

0.0
7.0
38.3

(interest income)
new revolver interest expense
senior cash interest expense
sub debt/note to owners
total interest expense

0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0

2.2
0.0
0.0
0.0
2.2

0.0
1.2
3.6
0.0
4.8

0.0
1.0
3.6
0.0
4.6

0.0
0.6
3.6
0.0
4.2

0.0
0.0
3.3
0.0
3.3

0.0
0.0
2.2
0.0
2.2

0.0
0.0
1.0
0.0
1.0

(0.2)
0.0
0.0
0.0
(0.2)

(0.9)
0.0
0.0
0.0
(0.9)

(1.7)
0.0
0.0
0.0
(1.7)

pre-tax income

0.3

(2.7)

12.7

8.9

14.9

20.7

23.4

26.3

30.3

33.7

36.7

40.0

current income taxes (40%)


deferred income taxes (40%)
net income

0.0
0.0
0.3

0.0
0.0
(2.7)

2.2
0.0
10.5

3.6
0.0
5.3

5.9
0.0
8.9

8.3
0.0
12.4

9.3
0.0
14.0

10.5
0.0
15.8

12.1
0.0
18.2

13.5
0.0
20.2

14.7
0.0
22.0

16.0
0.0
24.0

PIK preferred dividend

0.0

0.0

6.9

6.9

7.9

9.1

10.5

12.1

13.9

16.0

18.4

21.1

net income to common

0.3

(2.7)

3.6

(1.6)

1.0

3.3

3.5

3.7

4.3

4.2

3.7

2.9

Summary operating assumptions


1996
sales growth
sales CAGR
cost of sales as a % of sales
gross profit

7.9
Fiscal year ending
1997
1998
-5.2%
8.4%

Projected 12 months ended December


1999
2000
2001
2002
7.9%
8.3%
7.7%
7.0%
7.9%
8.1%
8.0%
7.7%
89.0%
88.4%
88.2%
88.2%
11.0%
11.6%
11.8%
11.8%

2003
7.0%
7.6%
88.2%
11.8%

2004
7.0%
7.5%
88.2%
11.8%

2005
7.0%
7.4%
88.2%
11.8%

2006
7.0%
7.3%
88.2%
11.8%

2007
7.0%
7.3%
88.2%
11.8%

91.5%
8.5%

94.9%
5.1%

87.8%
12.2%

selling expenses as a % of sales


unallocated use & corp overhead
G & A expenses as a % of sales
other expenses as a % of sales
TOTAL EXPENSES

3.9%
0.9%
3.2%
0.3%
8.4%

2.1%
0.8%
2.8%
0.4%
6.2%

3.6%
1.0%
2.0%
0.4%
6.9%

3.2%
0.9%
2.4%
-0.3%
6.2%

2.8%
0.9%
2.0%
-0.3%
5.4%

2.4%
0.9%
1.6%
-0.4%
4.5%

2.4%
0.9%
1.6%
-0.4%
4.5%

2.4%
0.9%
1.6%
-0.4%
4.5%

2.4%
0.9%
1.6%
-0.4%
4.5%

2.4%
0.9%
1.6%
-0.4%
4.5%

2.4%
0.9%
1.6%
-0.4%
4.5%

2.4%
0.9%
1.6%
-0.4%
4.5%

EBITDA margin
EBITDA growth
EBITDA CAGR
depreciation
EBIT margin
capex as a % of sales
working capital as a % of sales
effective tax rate

1.1%

0.0%

6.2%

1.0%
0.1%

1.1%
-1.1%

0.8%
5.4%

5.9%
2.9%
2.9%
1.1%
4.6%

7.2%
33.8%
17.3%
1.0%
6.0%

8.3%
23.8%
19.4%
1.0%
7.1%

8.2%
5.8%
15.9%
0.4%
7.1%

8.3%
7.8%
14.2%
0.4%
7.1%

8.4%
8.0%
13.2%
0.3%
7.3%

8.5%
8.6%
12.5%
0.3%
7.3%

8.7%
9.9%
12.2%
0.3%
7.3%

8.6%
5.9%
11.4%
0.3%
7.3%

40.0%

40.0%

40.0%

40.0%

40.0%

40.0%

40.0%

40.0%

40.0%

40.0%

40.0%

40.0%

1
7.9%
2.913%

2
0.656%
0.984%

3
0.050%
0.234%

4
0.004%
0.014%

5
0.000%
0.001%

6
0.000%
0.000%

7
0.000%
0.000%

8
0.000%
0.000%

9
0.000%
0.000%

0.0291331 0.33770957 0.2378582 0.0579207 0.0782715 0.0796265 0.0861054 0.0986054 0.0585573


1.0291331 1.33770957 1.2378582 1.0579207 1.0782715 1.0796265 1.0861054 1.0986054 1.0585573
1.0291331 1.376681196 1.7041361 1.8028408 1.943952 2.0987421 2.2794552 2.5042217 2.6508623

Balance sheet
Closing
1998

1997
cash and equivalents
accounts receivable
unbilled/other
prepaid expenses
total current assets

Projected 12 months ended December


1999
2000
2001
2002
0.0
0.0
0.0
0.0
80.7
87.4
94.1
100.7
11.1
12.0
12.9
13.9
0.0
0.0
0.0
0.0
91.8
99.4
107.1
114.6

0.0
107.8
14.8
0.0
122.6

4.6
115.3
15.9
0.0
135.8

2005
22.4
123.4
17.0
0.0
162.8

2006
43.1
132.0
18.2
0.0
193.2

2007
65.1
141.2
19.4
0.0
225.8

65.9
(50.8)
15.1
0.7
0.0
130.4

68.4
(54.8)
13.6
0.0
0.0
136.2

71.0
(59.4)
11.6
0.0
0.0
147.4

73.8
(64.9)
8.9
0.0
0.0
171.7

76.8
(71.9)
4.9
0.0
0.0
198.1

80.0
(78.9)
1.1
0.0
0.0
226.9

20.4
27.6
4.2
52.2

21.8
29.6
4.2
55.6

23.3
31.6
4.2
59.2

25.0
33.9
4.2
63.0

26.7
36.2
4.2
67.2

28.6
38.8
4.2
71.6

30.6
41.5
4.2
76.3

6.5
40.0
0.0
0.0
0.0
0.0
46.5

0.0
36.2
0.0
0.0
0.0
0.0
36.2

0.0
24.4
0.0
0.0
0.0
0.0
24.4

0.0
10.9
0.0
0.0
0.0
0.0
10.9

0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
96.2

0.0
0.0
95.3

0.0
0.0
88.5

0.0
0.0
80.0

0.0
0.0
70.0

0.0
0.0
63.0

0.0
0.0
67.2

0.0
0.0
71.6

0.0
0.0
76.3

46.0
4.7
(100.7)
59.5
108.3

52.9
4.7
(100.7)
57.9
111.0

60.8
4.7
(100.7)
58.9
119.1

70.0
4.7
(100.7)
62.2
124.6

80.5
4.7
(100.7)
65.7
130.2

92.5
4.7
(100.7)
69.5
136.0

106.4
4.7
(100.7)
73.8
147.2

122.4
4.7
(100.7)
78.0
171.5

140.7
4.7
(100.7)
81.7
198.0

161.8
4.7
(100.7)
84.6
226.7

0.1

0.0

0.0

0.0

-0.1

-0.1

-0.1

-0.1

-0.1

-0.1

0.0
76.7
5.4
0.0
82.1

0.0
74.7
14.9
0.0
89.6

53.9
(36.7)
17.2
0.0
0.0
99.3

52.4
(37.1)
15.3
3.3
0.0
108.2

56.9
(40.3)
16.6
2.6
0.0
111.0

61.4
(43.7)
17.7
2.0
0.0
119.1

63.6
(47.3)
16.3
1.3
0.0
124.7

17.2
17.6
2.6
37.4

16.2
25.1
4.2
45.5

17.5
23.7
4.2
45.4

18.9
25.7
4.2
48.8

new revolver
new senior term A
new senior term B
new senior term C
new sub debt
seller's note
total debt

0.0
0.0
0.0
0.0
0.0
0.0
0.0

13.3
40.0
0.0
0.0
0.0
0.0
53.3

10.8
40.0
0.0
0.0
0.0
0.0
50.8

other LT liabilities
existing debts
total liabilities

0.0
0.0
37.4

0.0
0.0
98.8

preferred
common stock
additional paid-in capital
retained earnings
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY

0.0
0.0
0.0
62.0
99.4
0.1

gross property, plant & equip.


less accum depreciation
net property, plant & equip.
transaction fees & expenses
other assets
TOTAL ASSETS
accounts payable
accrued liabilities
overdraft
total current liabilities

2003

2004

Balance sheet assumptions


days receivable
% of sales
days unbilled/other
% of sales
other current assets % of sales
days payable
% of sales
accrued expenses % of sales
other current liabilities % of sales

1997
109.1
29.9%
8.0
2.1%
0.0%
25.7
6.7%
6.9%
1.0%

coverages
EBITDA/total interest expense
total debt/EBITDA
net debt/EBITDA
bank debt/EBITDA
senior debt/EBITDA
(EBITDA -CAPEX)/total interest expense
total debt/(EBITDA-CAPEX)
net debt/(EBITDA -CAPEX)
bank debt/(EBITDA-CAPEX)
senior debt/(EBITDA-CAPEX)
total debt/total capitalization
net debt/net capitalization
capital expenditures
EBITDA - CAPEX

1998
98.1
26.9%
22.3
5.4%
0.0%
24.2
5.8%
9.0%
1.5%

Projected 12 months ended December


2000
2001
2002
2003
98.2
98.2
98.2
98.2
26.9%
26.9%
26.9%
26.9%
15.1
15.1
15.1
15.1
3.7%
3.7%
3.7%
3.7%
0.0%
0.0%
0.0%
0.0%
24.0
24.1
24.1
24.1
5.8%
5.8%
5.8%
5.8%
7.9%
7.9%
7.9%
7.9%

2004
98.2
26.9%
15.1
3.7%
0.0%
24.1
5.8%
7.9%

2005
98.2
26.9%
15.1
3.7%
0.0%
24.1
5.8%
7.9%

2006
98.2
26.9%
15.1
3.7%
0.0%
24.1
5.8%
7.9%

2007
98.2
26.9%
15.1
3.7%
0.0%
24.1
5.8%
7.9%

36.7
0.0

0.0

0.0

0.0

5.1
2.0
2.0
2.0
2.0
4.2
2.4
2.4
2.4
2.4
27.2%
27.2%

7.0
1.2
1.2
1.2
1.2
6.4
1.3
1.3
1.3
1.3
20.9%
20.9%

9.5
0.8
0.8
0.8
0.8
8.8
0.9
0.9
0.9
0.9
13.9%
13.9%

15.1
0.3
0.3
0.3
0.3
14.0
0.4
0.4
0.4
0.4
6.1%
6.1%

0.0
0.0
34.1
0.0

0.0
0.0

0.0
0.0

0.0
0.0

3.6
3.6
3.6
3.6
32.6%
32.6%

3.7
2.9
2.9
2.9
2.9
2.7
3.9
3.9
3.9
3.9
30.6%
30.6%

0.0

0.0

0.0

0.0
0.0
0.0%
-2.6%

0.0
0.0
0.0%
-12.3%

0.0
0.0
0.0%
-23.4%

0.0
0.0
0.0%
-35.0%

2.3
14.8

4.5
13.1

4.5
19.0

2.2
26.9

2.3
28.5

2.5
30.7

2.6
33.3

2.8
36.2

3
39.8

3.2
42.1

3.1
3.1
3.1
3.1

1.6

1999
98.2
26.9%
15.1
3.7%
0.0%
23.9
5.8%
7.9%

Cash flow statement


net income to common
depreciation on existing basis
depreciation on post acq capex
acquisition goodwill
existing goodwill
amortization of financing fees
deferred taxes
non-cash interest expense
PIK preferred dividend
funds from operations

1999
(1.6)
3.2
0.0
0.0
0.0
0.7
0.0
0.0
6.9
9.2

Projected 12 months ended December


2000
2001
2002
2003
1.0
3.3
3.5
3.7
3.4
3.6
1.5
1.5
0.0
0.0
2.0
2.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.7
0.7
0.7
0.7
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
7.9
9.1
10.5
12.1
13.0
16.7
18.2
20.5

2004
4.3
1.5
3.1
0.0
0.0
0.0
0.0
0.0
13.9
22.8

2005
4.2
1.5
4.0
0.0
0.0
0.0
0.0
0.0
16.0
25.7

2006
3.7
1.5
5.5
0.0
0.0
0.0
0.0
0.0
18.4
29.0

2007
2.9
1.5
5.5
0.0
0.0
0.0
0.0
0.0
21.1
31.0

change in accounts receivable


change in inventory
change in other assets
change in payables
change in accrued liabilities
change in other current liabilities
cash flow from operations

(6.0)
3.8
0.0
1.3
(1.4)
0.0
6.9

(6.7)
(0.9)
0.0
1.5
2.0
0.0
8.8

(6.7)
(0.9)
0.0
1.5
2.0
0.0
12.5

(6.6)
(0.9)
0.0
1.4
1.9
0.0
14.1

(7.0)
(1.0)
0.0
1.5
2.1
0.0
16.1

(7.5)
(1.0)
0.0
1.6
2.2
0.0
18.1

(8.1)
(1.1)
0.0
1.7
2.4
0.0
20.6

(8.6)
(1.2)
0.0
1.9
2.5
0.0
23.6

(9.2)
(1.3)
0.0
2.0
2.7
0.0
25.2

capital expenditures
acquisition financing
gain on sale of assets
total mandatory debt repayments
free cash flow available to pay down debt

(4.5)

(4.5)

(2.2)

(2.3)

(2.5)

(2.6)

(2.8)

(3.0)

(3.2)

0.0
2.4

0.0
4.3

0.0
10.3

0.0
11.8

0.0
13.6

0.0
15.5

0.0
17.8

0.0
20.6

0.0
22.0

debt additions/(repayments)
debt repayments
change in cash and equivalents

(2.4)
(2.4)
0.0

(4.3)
(4.3)
0.0

(10.3)
(10.3)
0.0

(11.8)
(11.8)
0.0

(13.6)
(13.6)
0.0

(10.9)
(10.9)
4.6

0.0
0.0
17.8

0.0
0.0
20.6

0.0
0.0
22.0

beginning cash and equivalents


ending cash and equivalents

0.0
0.0

0.0
0.0

0.0
0.0

0.0
0.0

0.0
0.0

0.0
4.6

4.6
22.4

22.4
43.1

43.1
65.1

cumulative cash

2.4

6.8

17.0

28.8

42.4

57.9

75.7

96.3

118.3

Financing assumptions
1998
interest rates on debt
new revolver
new senior term A
new senior term B
new senior term C
new sub debt
seller's note
new preferred equity (PIK)

Projected 12 months ended December


2000
2001
2002
2003

1999

2004

2005

2006

2007

9.0%
9.0%
0.0%
0.0%
12.0%
12.0%
15.0%

9.0%
9.0%
0.0%
0.0%
12.0%
12.0%
15.0%

9.0%
9.0%
0.0%
0.0%
12.0%
12.0%
15.0%

9.0%
9.0%
0.0%
0.0%
12.0%
12.0%
15.0%

9.0%
9.0%
0.0%
0.0%
12.0%
12.0%
15.0%

9.0%
9.0%
0.0%
0.0%
12.0%
12.0%
15.0%

9.0%
9.0%
0.0%
0.0%
12.0%
12.0%
15.0%

9.0%
9.0%
0.0%
0.0%
12.0%
12.0%
15.0%

9.0%
9.0%
0.0%
0.0%
12.0%
12.0%
15.0%

9.0%
9.0%
0.0%
0.0%
12.0%
12.0%
15.0%

existing straight debt interest expense schedule


new revolver
new senior term A
new senior term B
new senior term C
new sub debt
seller's note
total existing straight debt interest expense

0.0
0.0
0.0
0.0
0.0
0.0
0.0

1.2
3.6
0.0
0.0
0.0
0.0
4.8

1.0
3.6
0.0
0.0
0.0
0.0
4.6

0.6
3.6
0.0
0.0
0.0
0.0
4.2

0.0
3.3
0.0
0.0
0.0
0.0
3.3

0.0
2.2
0.0
0.0
0.0
0.0
2.2

0.0
1.0
0.0
0.0
0.0
0.0
1.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0

existing straight debt mandatory repayment


new revolver
new senior term A
new senior term B
new senior term C
new sub debt
seller's note
total existing straight debt mandatory repayment

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

existing straight debt non mandatory repayment


new revolver
new senior term A
new senior term B
new senior term C
new sub debt
seller's note
total existing straight debt non mandatory repayment

0.0
0.0
0.0
0.0
0.0
0.0
0.0

2.4
0.0
0.0
0.0
0.0
0.0
2.4

4.3
0.0
0.0
0.0
0.0
0.0
4.3

6.5
3.8
0.0
0.0
0.0
0.0
10.3

0.0
11.8
0.0
0.0
0.0
0.0
11.8

0.0
13.6
0.0
0.0
0.0
0.0
13.6

0.0
10.9
0.0
0.0
0.0
0.0
10.9

0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0

13.3
40.0
0.0
0.0
0.0
0.0
53.3

10.8
40.0
0.0
0.0
0.0
0.0
50.8

6.5
40.0
0.0
0.0
0.0
0.0
46.5

0.0
36.2
0.0
0.0
0.0
0.0
36.2

0.0
24.4
0.0
0.0
0.0
0.0
24.4

0.0
10.9
0.0
0.0
0.0
0.0
10.9

0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0

46.0

46.0
6.9
52.9

52.9
7.9
60.8

60.8
9.1
70.0

70.0
10.5
80.5

80.5
12.1
92.5

92.5
13.9
106.4

106.4
16.0
122.4

122.4
18.4
140.7

140.7
21.1
161.8

debt outstanding after transaction


new revolver
new senior term A
new senior term B
new senior term C
new sub debt
seller's note
total existing straight debt outstanding
seller's note
repayment
accrued interest
ending sellers note
new preferred equity (PIK)
new preferred equity dividend
ending new preferred equity