‍EXPLOITING THE LENDING MARKET

• ‍‍Prepared marketing materials and canvassed over 100 potential lenders to maximize competitive tension.
• Built a robust monthly credit model with a bottom-up forecast of the company’s performance to assess leverage capacity and predict covenant choke-points.
• Maximized optionality by combining various senior and junior debt proposals (7 lenders and 18 possible combinations).
• Found errors with the previous lender's borrowing base calculation that increased available capital by more than 10%.
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‍TOO MUCH MONEY?

• ‍‍Before we started our lender outreach, we indicated we could secure 3.0x to 4.5x leverage (Debt to EBITDA) for Cole.
• A proposal was sourced for 6.7x. However, we worked with a lender that proposed 4.8x to structure a facility that balanced flexibility, liquidity, and cost.
• The following summarizes the credit facility scenarios available to Cole from the proposals received (note the costs are net of Valitas’ fees):
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THE OUTCOME
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Valitas arranged a financing for Cole that was higher than the top end of the range we indicated prior to contacting lenders and that exceeded its prior financing commitment by 87%.

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