Unitranche underwriting

Halden Components Ltd (synthetic)

AI off: figures entered manually

Company

NameSectorOwnership

Historic financials

SourcePeriodRevenue£mOperating profit£mDepreciation and amortisation£mCapital expenditure£mSeasonality

Weights split the year into quarters. Sizing, leverage and covenant headroom are unaffected by the split; only the opening working capital and the first three LTM tests move.

Prior years (3)

Earlier years inform judgement only — trend, volatility, reinvestment and whether “exceptional” items recur. They never change the facility, which is sized off the last twelve months.

YearRevenue£mOperating profit£mDepreciation and amortisation£mCapital expenditure£mExceptional items£m

EBITDA adjustments

Cap on positive addbacks%

AddbackCategoryAmount (signed)£kLender haircut%Evidence

Forecast drivers

QuartersqtrsRevenue growth p.a.%Gross margin%Overhead growth p.a.%Capex, % revenue%D&A, % revenue%Debtor daysdaysCreditor daysdaysStock daysdays

Structure and pricing

StructureSONIA (flat)%Requested quantum (0 = sized)£m

Unitranche

Margin over SONIA%OID%Exit fee%TenorqtrsAmortisation p.a.%

Super senior RCF and cash

RCF commitment£mRCF drawn at close£mRCF margin%Commitment fee%Cash at close£mMinimum cash£mOther debt at close£mInterest onCash sweep testedDistributions allowed

Sizing targets

Unitranche net leveragexSenior net leveragexTotal net leverage (senior + mezz)xInterest cover (min)xFixed charge cover (min)x

Covenants and downside

Net leverage covenantInterest cover covenantFixed charge cover covenantCapex covenantHeadroom, year 1%Headroom, year 2%Headroom, year 3 on%Covenants set offBase case shown

Custom stress

Revenue haircut%Gross margin compression%Debtor days updaysCreditor days downdaysCapex overrun%

UK structure

Accounts prepared underAnnual rent£mRent capitalisationxDisclosed lease liability£mUse disclosed liabilityShareholder loan notes£mLoan notes treated asLoan notes pay cashPreference shares£mPrefs treated asOwner-managed normalisation

Recovery

Distressed EV multiplexDefault quarterqtrEBITDA decline at default%Realisation costs%Preferential claims£mRCF fully drawn at defaultTrade debtors£mStock£mPlant and machinery£mProperty at valuation£mIntangibles£m

Review the inputs, then press Calculate to size the facility and run every case.