Kenny Whitelaw-Jones

Always negotiate off the model

Once we’ve adjusted the senior debt calculations to facilitate early repayment, building the rest of the refinancing logic involves copying existing calculations we created for senior debt. We’ll need the following elements: * Refinancing facility sizing/drawdown * Senior debt repayment * Refinancing facility interest * Refinancing facility repayment * Refinancing facility ratios

The first stage in setting up our model to handle a refinancing is to address the fact that we will not service the existing senior debt facility after the refinancing date. We therefore need: * A revised repayment period flag * Revised interest and principal repayment calculations that de-activate after the refinancing

In the case study, we’re told that we can raise 10-year debt for this business. However, we have an agreement in place to sell electricity for a much longer period than that. We, therefore, have a lot of unused debt capacity. We can use this available debt capacity by

Accountants and modellers like to give things fancy names and make them appear more complicated than they are. You might hear people talking about direct vs indirect cashflows. What we have in the model so far is a direct cash flow; we put the cash receipts and cash payments directly

What should an incoming shareholder pay to acquire a 40% stake at a 12% IRR?

There were a lot of parts to getting our tax calculations done. And this was a somewhat simplified example. There's no doubt that getting tax right is one of the most challenging areas of modelling due to the multitude of different rules in different jurisdictions. 💡Did I mention

Our tax calc is all working now, our balance sheet balances, and we have dealt with the circularity. We have one more topic to cover, and that's Deferred tax. Deferred tax liability is a line on the balance sheet that records taxes that are owed but are not

Every time we change an assumption, we will have to run the macro to resolve the model. We, therefore, want to make that easy.

You have a number of different options when it comes to Excel file types. This quick guide will help you tell your XLXS from your XLSB.