From: Marcus Webb <mwebb@brickfieldep.com>
To: James Morrison <jmorrison@brickfieldep.com>
Date: March 22, 2024 12:00 AM
Subject: Debt refinancing options - Meridian Holdings

**From:** Jane Thompson, Senior Associate, Capital Markets  
**To:** Robert Chen, Vice President, Portfolio Management  
**Date:** October 10, 2023  
**Subject:** Debt Refinancing Options for Meridian Holdings  

Dear Robert,

I hope this message finds you well. As we continue to monitor the financial landscape and the performance of our portfolio, I wanted to bring to your attention several potential debt refinancing options for Meridian Holdings that could enhance their capital structure and reduce overall interest expenses.

As you know, Meridian Holdings currently has a $50 million term loan with an interest rate of 7.5%, maturing in June 2025. Given the current market conditions and the recent decline in benchmark rates, I believe we should explore refinancing this debt to take advantage of the favorable environment. The recent 10-year Treasury yield has dipped to 3.8%, and bank lenders are increasingly competitive, which could allow us to secure a new facility at a lower rate.

I have spoken with a couple of leading banks, including First National Bank and Capital One, who are both expressing interest in refinancing options for our portfolio companies. Preliminary discussions indicate we could achieve rates as low as 5.25% for a new term loan, which would result in significant interest savings for Meridian. Specifically, refinancing could save approximately $1.125 million annually in interest expenses, improving their EBITDA margins and overall cash flow—factors critical as they plan for expansion next year.

I recommend scheduling a meeting next week to discuss this further, assess the potential impacts on Meridian's financials, and outline our strategic approach. Additionally, we should consider the implications of a potential refinancing on our exit timeline, given our goal of exploring liquidity events in mid-2025.

Please let me know your availability for a meeting, and I will coordinate with the rest of the team.

Best regards,

Jane Thompson  
Senior Associate, Capital Markets  
[Your PE Firm Name]  
[Your PE Firm Contact Information]  
