QUESTION FOR LENDERS (LOAN SIZING)

Assumed Scenario:
- SearchFund to acquire 70% stake of TargetCo via share deal
- TargetCo EBITDA (FCF) $5m, no existing debt
- Deal multiple 6x EBITDA, i.e., SF to pay $21m for 70% majority

Questions:
- How much can a lender provide to the SearchFund under this scenario? (holdco financing, non-recourse)
- Is a PIK toggle structure possible? Otherwise how would a lender structure this?
- Any relevant notes/experience would be helpful as well, thanks

(Deal is at an early stage. Checking out what's possible and who's out there...)



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