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Redwood Broadband · RWBB

DEMO DATAUNDERWRITING ASSUMPTIONHOLD

Recovery waterfall by scenario

ANALYST PROJECTION

Recovery value = MAX(going-concern value, liquidation value) + cash, less administrative costs, then distributed by seniority (strict absolute priority; equal ranks pari passu). Going concern = distressed EV/EBITDA multiple × EBITDA at the valuation event; liquidation = asset base × (1 − decline) × liquidation recovery. Valuation event = the payment-default period, or — if no default is modelled — a hypothetical default at the trough-EBITDA period (so protection is always measured). Specific liens are paid from their own collateral pool; any deficiency joins general creditors. Illustrative appraised / collateral value (DEMO)

Base Case — FY2027E (modelled payment default)

Going concern

$3.3B

Liquidation

$2.9B

Recovery value = MAX (+ cash $0M)

$3.3B · going concern

Target tranche · LGD

100% recovery · 0% loss

Claim (by seniority)	Rank	Claim	Recovery	Recovery %	Loss	Loss %
Recovery value			$3.3B
Less: administrative / DIP costs			($130.5M)
Revolver	1	$148.5M	$148.5M	100.0%	$0.0M	0.0%
First-Lien Term Loan	1	$1.7B	$1.7B	100.0%	$0.0M	0.0%
Second-Lien Notes 10.50%	2	$1.0B	$1.0B	100.0%	$0.0M	0.0%
Senior Unsecured Notes 6.50%	3	$1.3B	$256.3M	19.4%	$1.1B	80.6%
Total claims		$4.2B	$3.1B		$1.1B
Equity (residual)			$0.0M	Wiped out

Downside — FY2027E (modelled payment default)

Going concern

$2.9B

Liquidation

$2.4B

Recovery value = MAX (+ cash $0M)

$2.9B · going concern

Target tranche · LGD

80% recovery · 20% loss

Claim (by seniority)	Rank	Claim	Recovery	Recovery %	Loss	Loss %
Recovery value			$2.9B
Less: administrative / DIP costs			($114.0M)
Revolver	1	$204.9M	$204.9M	100.0%	$0.0M	0.0%
First-Lien Term Loan	1	$1.7B	$1.7B	100.0%	($0.0M)	-0.0%
Second-Lien Notes 10.50%	2	$1.0B	$826.0M	80.5%	$200.2M	19.5%
Senior Unsecured Notes 6.50%	3	$1.3B	$0.0M	0.0%	$1.3B	100.0%
Total claims		$4.3B	$2.7B		$1.5B
Equity (residual)			$0.0M	Wiped out

Severe Downside — FY2027E (modelled payment default)

Going concern

$2.1B

Liquidation

$1.9B

Recovery value = MAX (+ cash $0M)

$2.1B · going concern

Target tranche · LGD

6% recovery · 94% loss

Claim (by seniority)	Rank	Claim	Recovery	Recovery %	Loss	Loss %
Recovery value			$2.1B
Less: administrative / DIP costs			($84.8M)
Revolver	1	$258.4M	$258.4M	100.0%	$0.0M	0.0%
First-Lien Term Loan	1	$1.7B	$1.7B	100.0%	$0.0M	0.0%
Second-Lien Notes 10.50%	2	$1.0B	$64.9M	6.3%	$961.3M	93.7%
Senior Unsecured Notes 6.50%	3	$1.3B	$0.0M	0.0%	$1.3B	100.0%
Total claims		$4.3B	$2.0B		$2.3B
Equity (residual)			$0.0M	Wiped out

Recovery lab — change valuation assumptions and watch the waterfall re-allocate

Distressed EBITDA ($M)
Distressed multiple (x)
Asset base decline %
Liquidation recovery %
Admin costs %
Override value ($M)

Going-concern $2.1B vs liquidation $1.9B → recovery value = MAX = $2.1B (used: going concern, $2.1B). Claims = current face value + 3 months accrued interest.

Claim (by seniority)	Rank	Claim	Recovery	Recovery %	Loss	Loss %
Recovery value			$2.1B
Less: administrative / DIP costs			($84.9M)
Revolver	1	$203.8M	$203.8M	100.0%	$0.0M	0.0%
First-Lien Term Loan	1	$1.7B	$1.7B	100.0%	$0.0M	0.0%
Second-Lien Notes 10.50%	2	$1.0B	$98.6M	9.6%	$927.7M	90.4%
Senior Unsecured Notes 6.50%	3	$1.3B	$0.0M	0.0%	$1.3B	100.0%
Total claims		$4.3B	$2.0B		$2.2B
Equity (residual)			$0.0M	Wiped out