From: Elena Rodriguez <erodriguez@brickfieldep.com>
To: David Kim <dkim@brickfieldep.com>
Date: March 15, 2024 12:00 AM
Subject: Debt refinancing options - Acme Corporation

**From:** Sarah Mitchell, Vice President of Finance  
**To:** James Roberts, Senior Partner  
**CC:** Lisa Tran, Associate; Mark Jensen, Analyst  
**Date:** October 12, 2023  
**Subject:** Debt Refinancing Options for Acme Corporation  

Dear James,

I hope this message finds you well. I wanted to follow up on our recent discussions regarding Acme Corporation’s current debt structure and the potential refinancing options that we should explore ahead of the upcoming maturity of their $50 million term loan, which is due on March 15, 2024.

Given the favorable interest rate environment, which currently averages around 4.25% for similarly rated companies, I believe we should consider tapping into the market to refinance Acme's existing debt obligations. The current loan carries a fixed interest rate of 6.5%, which significantly impacts their cash flow, especially given the projected revenue growth of 12% over the next fiscal year.

I have arranged for a preliminary call with our banking contacts at First National Bank on October 20, 2023, to discuss potential refinancing terms. Early indications suggest we might secure terms in the range of 4% to 4.5%, which would yield substantial savings in interest expense—potentially around $1.3 million annually based on current projections.

Furthermore, with Acme's recent acquisition of XYZ Technologies, their leverage ratio has increased slightly to 3.2x EBITDA. However, I believe the growth potential from this acquisition will offset any temporary spikes in leverage. It may be prudent to also discuss the possibility of a revolving credit facility to enhance their liquidity position, especially as we navigate the integration process.

Please let me know if you have any additional insights or if there are other stakeholders who should join our discussions with First National Bank. Your guidance will be invaluable as we move forward with these refinancing strategies.

Best regards,

Sarah Mitchell  
Vice President of Finance  
[Your PE Firm Name]  