Walgreens LBO Analysis.xlsx

	A	B	D	E	F	G	H	I	J	K	L	M	N	O	P	Q	R	S
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2	x	WalGreens Corporation
3		LBO Analysis													Financing Structure		Structure 3
4		($ in millions, except per share data)													Operating Scenario		Base Case
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6		Transaction Summary
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8		Sources of Funds						Uses of Funds				Purchase Price			Returns Analysis
9				% of Total	Multiple of EBITDA						% of Total	Offer Price Per Share		$ 11.45	Exit Year		Year 5
10			Amount	Sources	Latest FYE	Cumulative	Pricing			Amount	Uses	Fully DSO		864.62	Entry Multiple		3.4x
11		Revolving Credit Facility	-	0.0%	- x	- x	SOFR+200 bps	Equity Purchase Price		9,900	49.7%	Equity Purchase Price		$ 9,900	Exit Multiple		3.4x
12		Term Loan A	6,000	30.1%	1.1x	1.1x	SOFR+200 bps	Repay Exisitng Debt		9,549	47.9%	Plus: Existing Net Debt		8,174	IRR		NM
13		Term Loan B	4,000	20.1%	0.8x	1.9x	SOFR+200 bps	Financing Fees		292	1.5%	Enterprise Value		$ 18,074	MOIC		#REF!
14		Term Loan C	2,500	12.5%	0.5x	2.4x	SOFR+200 bps	Transaction and Other Fees		198	1.0%
15		Senior Notes	2,000	10.0%	0.4x	2.8x	8.00%					Transaction Multiples			Options
16		Subordinated Notes	2,300	11.5%	0.4x	3.2x	9.00%								Financing Structure		3
17		Equity Contribution	2,689	13.5%	0.5x	3.7x						Enterprise value/ sales			Operating Scenario		3	3 is the base case
18		Mgmt. Rollover Equity	-	0.0%	- x	3.7x						Sales	147,658	8.2x	Cash Flow Sweep		1	1: Yes, 2: No
19		Cash on Hand	450	2.3%	0.1x	3.8x						Enterprise value/ EBITDA			Min. Cash Balance		1	1: Yes, 2: No
20		-	-	0.0%	- x	3.8x						EBITDA	5,264	3.4x	Average Interest		1	1: Yes, 2: No
21		Total Sources of Funds	19,939	100%	3.8x	3.8x		Total Uses		19,939	100%				Financing Fees		1	1: Yes, 2: No
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23		Summary Financial Data						Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7	Year 8	Year 9	Year 10
24		Fiscal Year End		8/31/2021	8/31/2022	8/31/2023	8/31/2024	8/31/2025	8/31/2026	8/31/2027	8/31/2028	8/31/2029	8/31/2030	8/31/2031	8/31/2032	8/31/2033	8/31/2034
25				Historical Period				Projection Period
26		Sales		132,509	132,703	139,081	147,658	156,921	166,933	177,762	189,482	202,178	215,643	229,918	245,047	261,073	278,043
27		% growth		NA	0.1%	4.8%	6.2%	6.3%	6.4%	6.5%	6.6%	6.7%	6.7%	6.6%	6.6%	6.5%	6.5%
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29		Gross Profit		28,067	28,266	27,072	26,524	28,827	31,347	34,104	37,125	40,436	43,991	47,823	51,950	56,392	61,169
30		Gross margins		21.2%	21.3%	19.5%	18.0%	18.4%	18.8%	19.2%	19.6%	20.0%	20.4%	20.8%	21.2%	21.6%	22.0%
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32		Adjusted EBITDA		-	7,515	6,513	5,264	2,316	3,464	4,755	6,205	7,835	9,619	11,604	13,805	16,240	18,907
33		Adjusted EBITDA margins		–	5.7%	4.7%	3.6%	1.5%	2.1%	2.7%	3.3%	3.9%	4.5%	5.0%	5.6%	6.2%	6.8%
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35		Capital Expenditures		1,379	1,734	2,117	1,381	1,569	1,669	1,778	1,895	2,022	2,156	2,299	2,450	2,611	2,780
36		% of sales		1.0%	1.3%	1.5%	0.9%	1.0%	1.0%	1.0%	1.0%	1.0%	1.0%	1.0%	1.0%	1.0%	1.0%
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38		Cash interest expense						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
39		Amortization of financing fees						40	40	40	40	40	40	40	9	-	-
40		Total interest expense						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
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42		Adjusted EBITDA						2,316	3,464	4,755	6,205	7,835	9,619	11,604	13,805	16,240	18,907
43		Less: Cash interest expense						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
44		Plus: Interest income						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
45		Less: Taxes						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
46		Less: Capex						(1,569)	(1,669)	(1,778)	(1,895)	(2,022)	(2,156)	(2,299)	(2,450)	(2,611)	(2,780)
47		(+/-) Changes in NWC						545	584	627	674	725	851	899	950	1,003	1,058
48		Free cash flow						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
49		Cumulative FCF						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
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51		Capitalization
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53		Cash on Balance Sheet						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
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55		Revolving Credit Facility						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
56		Term Loan A						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
57		Term Loan B						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
58		Term Loan C						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
59		Senior Notes						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
60		Subordinated Notes						2,300	2,300	2,300	2,300	2,300	2,300	2,300	-	-	-
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62		Total debt						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
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64		Equity						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
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66		Total capitalization						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
67		% of bank debt repaid						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
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69		Credit Statistics
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71		% debt of total capitalization						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
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73		EBITDA/ Cash interest expense						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
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75		(EBITDA-Capex)/ Cash interest expense						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
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77		EBITDA/ Total interest expense						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
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79		(EBITDA-Capex)/ Total interest expense						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
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81		Senior debt/ EBITDA						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
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83		Junior Debt/ EBITDA						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
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85		Net debt/ EBITDA						#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!	#REF!
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