A private equity fund has produced the following forecasts for a potential target fora LBO prior to the LBO (pre-LBO). Data are in millions of dollars. Sep-30-2016E Sep-30-2017E Sep-30-2018E Sep-30-2019E Sep-30-2020E EBIT 150.00 154.50 159.14 163.91 168.83 Interest 65.00 65.00 65.00 65.00 65.00 Net Income 85.00 89.50 94.14 98.91 103.83 Depreciation 90.00 92.70 95.48 98.35 101.30 Operating cash flow 175.00 182.20 189.62 197.25 205.12 Capital expenditures -100.00 -103.00 -106.09 -109.27 -112.55 Dividend payments -30.00 -30.00 -30.00 -30.00 -30.00 Share repurchases -30.00 -30.00 -30.00 -30.00 -30.00 Change in cash 15.00 19.20 23.53 27.98 32.57 Note: I am assuming that taxes are zero for simplicity, so net income = EBIT –Interest.

A private equity fund has produced the following forecasts for a potential target fora LBO prior to the LBO (pre-LBO). Data are in millions of dollars.

Note: I am assuming that taxes are zero for simplicity, so net income = EBIT –Interest.

The private equity fund is considering a proposal to finance this acquisition with 1B in new debt and 500M in equity from the private equity fund. The new debt will come from a new bank loan at an interest rate of 6%. The private equity fund has estimated that it can increase the company’s EBIT by 10% starting in 2018. The private equity fund is also reducing dividends and share repurchases to zero starting in 2016. Other forecasts are unchanged.

The total interest payment following the acquisition will be ________.