You are modeling a potential LBO transaction funded with a Revolver, Term Loan A and Term Loan B. Assume any Excess Cash is used to pay down the Revolver first, then the Term Loan A, and then the Term Loan B. When writing the formulas for the Optional repayment of the Term Loan A, which variables below should NOT be included?
1. Cash used to paydown the Revolver
2. Any Mandatory Debt Repayments of Term Loan A
3. Cash used for the Mandatory Repayments of Term Loan B
4. Cash used for the Optional Repayments of Term Loan B
5. Current Balance of Term Loan A
A. 1 only
B. 3 only
C. 4 only
D. 2 and 3
E. 4 and 5