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Welcome

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Info

Project Finance
Workout Information
Features Model Details
◦ Set up Company name ABC Incorporated
◦ Operational Date 31-Dec-15
◦ Expansion and maintenance PP&E Currency USD
Units Millions
Analyst Name Firstname Lastname
Circular Switch 1

Tab Structure Formatting

Project Finance Forecast model
Input
Hard coded
Formulas

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Project Finance simple model

A B C D E F G H I J K
2 Construction Construction Construction Operational Operational Operational Operational Operational
3 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
4
5 Financing assumptions
6 Debt financing of set up costs % 55.0%
7 Equity financing of set up costs % 45.0%
8 Interest cost - revolver (5.0%) (5.0%) (5.0%) (5.0%) (5.0%) (5.0%) (5.0%) (5.0%)
9 Interest cost - long term debt (7.0%) (7.0%) (7.0%) (7.0%) (7.0%) (7.0%) (7.0%) (7.0%)
10 Exit EBIT multiple 10.0 x
11
12 Operational assumptions
13 Construction capex 100.0 100.0 100.0
14 Construction capex years depreciated over 20.0
15 Maintenance capex 0.0 0.0 0.0 30.0 30.0 30.0 30.0 30.0
16 Maintenance capex years depreciated over 10.0
17 Other set up costs 20.0 20.0 20.0
18 Other set up costs amortized over 3.0
19 Revenues 100.0 200.0 250.0 300.0 320.0
20 Operating costs % sales (70.0%) (70.0%) (70.0%) (70.0%) (70.0%)
21 Working capital float % of first year working capital 50.0%
22 Working capital % sales 20.0% 20.0% 20.0% 20.0% 20.0%
23 Tax rate (35.0%) (35.0%) (35.0%) (35.0%) (35.0%) (35.0%) (35.0%) (35.0%)
24
25 Sources and uses of funds
26 Capex 100.0 100.0 100.0
27 Other set up costs spend 20.0 20.0 20.0
28 Working capital 0.0 0.0 10.0
29 Interest expense 2.4 7.2 12.3
30 Total spend 122.4 127.2 142.3
31
32 Debt issued 67.3 69.9 78.3
33 Common stock issued 55.1 57.2 64.1

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Project Finance simple model

A B C D E F G H I J K
34 Total financing 122.4 127.2 142.3
35
36 PP&E
37 Beginning gross PP&E 0.0 100.0 200.0 300.0 330.0 360.0 390.0 420.0
38 Construction capex 100.0 100.0 100.0 0.0 0.0 0.0 0.0 0.0
39 Maintenance capex 0.0 0.0 0.0 30.0 30.0 30.0 30.0 30.0
40 Ending gross PP&E 0.0 100.0 200.0 300.0 330.0 360.0 390.0 420.0 450.0
41
42 Depreciation
43 Year 1 - construction phase (5.0) (5.0) (5.0) (5.0) (5.0)
44 Year 2 - construction phase (5.0) (5.0) (5.0) (5.0) (5.0)
45 Year 3 - construction phase (5.0) (5.0) (5.0) (5.0) (5.0)
46 Year 4 - operational phase (3.0) (3.0) (3.0) (3.0)
47 Year 5 - operational phase (3.0) (3.0) (3.0)
48 Year 6 - operational phase (3.0) (3.0)
49 Year 7 - operational phase (3.0)
50 Year 8 - operational phase
51 Total depreciation (15.0) (18.0) (21.0) (24.0) (27.0)
52
53 Beginning net PP&E 0.0 100.0 200.0 300.0 315.0 327.0 336.0 342.0
54 Capex 100.0 100.0 100.0 30.0 30.0 30.0 30.0 30.0
55 Depreciation expense 0.0 0.0 0.0 (15.0) (18.0) (21.0) (24.0) (27.0)
56 Ending net PP&E 0.0 100.0 200.0 300.0 315.0 327.0 336.0 342.0 345.0
57
58 Capitalized set up costs
59 Beginning net capitalized set up costs 0.0 22.4 49.5 81.9 54.6 27.3 0.0 0.0
60 Interest and other set up costs spend 22.4 27.2 32.3
61 Amortization expense (27.3) (27.3) (27.3) 0.0 0.0
62 Ending net capitalized set up costs 0.0 22.4 49.5 81.9 54.6 27.3 0.0 0.0 0.0
63
64 Income statement
65 Revenues 100.0 200.0 250.0 300.0 320.0

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A B C D E F G H I J K
66 Operating costs (70.0) (140.0) (175.0) (210.0) (224.0)
67 Depreciation (15.0) (18.0) (21.0) (24.0) (27.0)
68 Amortization (27.3) (27.3) (27.3) 0.0 0.0
69 EBIT (12.3) 14.7 26.7 66.0 69.0
70
71 Interest expense (15.5) (16.0) (15.8) (14.8) (13.3)
72 Profit before tax (27.8) (1.3) 10.9 51.2 55.7
73
74 Tax expense 9.7 0.5 (3.8) (17.9) (19.5)
75 Net income (18.0) (0.8) 7.1 33.3 36.2
76
77 Other balance sheet calculations
78 Working capital set up 10.0
79 Working capital operational 20.0 40.0 50.0 60.0 64.0
80 Total working capital 10.0 20.0 40.0 50.0 60.0 64.0
81
82 Beginning retained earnings 0.0 0.0 0.0 0.0 (18.0) (18.9) (11.8) 21.5
83 Net income 0.0 0.0 0.0 (18.0) (0.8) 7.1 33.3 36.2
84 Ending retained earnings 0.0 0.0 0.0 0.0 (18.0) (18.9) (11.8) 21.5 57.7
85
86 Beginning common stock 0.0 55.1 112.3 176.3 176.3 176.3 176.3 176.3
87 Common stock issue 55.1 57.2 64.1 0.0 0.0 0.0 0.0 0.0
88 Ending common stock 0.0 55.1 112.3 176.3 176.3 176.3 176.3 176.3 176.3
89
90 Balance sheet
91 Cash 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
92 Working capital 0.0 0.0 10.0 20.0 40.0 50.0 60.0 64.0
93 Net PP&E 100.0 200.0 300.0 315.0 327.0 336.0 342.0 345.0
94 Net intangibles 22.4 49.5 81.9 54.6 27.3 0.0 0.0 0.0
95 Total assets 122.4 249.5 391.9 389.6 394.3 386.0 402.0 409.0
96
97 Revolver 0.0 0.0 0.0 15.8 21.3 5.9 0.0 0.0

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A B C D E F G H I J K
98 Long term debt 67.3 137.2 215.5 215.5 215.5 215.5 204.2 175.0
99 Common stock 55.1 112.3 176.3 176.3 176.3 176.3 176.3 176.3
100 Retained earnings 0.0 0.0 0.0 (18.0) (18.9) (11.8) 21.5 57.7
101 Total liabilities and equity 122.4 249.5 391.9 389.6 394.3 386.0 402.0 409.0
102
103 Check OK OK OK OK OK OK OK OK
104
105 Cash flow statement
106 Net income 0.0 0.0 0.0 (18.0) (0.8) 7.1 33.3 36.2
107 Depreciation 0.0 0.0 0.0 15.0 18.0 21.0 24.0 27.0
108 Amortization 0.0 0.0 0.0 27.3 27.3 27.3 0.0 0.0
109 (Inc) dec in operating working capital 0.0 0.0 (10.0) (10.0) (20.0) (10.0) (10.0) (4.0)
110 Cash flow from operations 0.0 0.0 (10.0) 14.2 24.4 45.4 47.3 59.2
111
112 (Capex) (100.0) (100.0) (100.0) (30.0) (30.0) (30.0) (30.0) (30.0)
113 (Capitalized setup costs) (22.4) (27.2) (32.3) 0.0 0.0 0.0 0.0 0.0
114 Cash flow from investing activities (122.4) (127.2) (132.3) (30.0) (30.0) (30.0) (30.0) (30.0)
115
116 Revolver issuance (repayment) 0.0 0.0 0.0 15.8 5.6 (15.4) (5.9) 0.0
117 Long term debt issuance (repayment) 67.3 69.9 78.3 0.0 0.0 0.0 (11.3) (29.2)
118 Common stock issuance 55.1 57.2 64.1 0.0 0.0 0.0 0.0 0.0
119 Cash flow from financing 122.4 127.2 142.3 15.8 5.6 (15.4) (17.3) (29.2)
120
121 Beginning cash 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
122 Net cash flow 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
123 Ending cash 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
124
125 Financing and interest calculations
126 EBITDA 0.0 0.0 0.0 30.0 60.0 75.0 90.0 96.0
127 Tax expense 0.0 0.0 0.0 9.7 0.5 (3.8) (17.9) (19.5)
128 (Inc) dec in operating working capital 0.0 0.0 (10.0) (10.0) (20.0) (10.0) (10.0) (4.0)
129 Cash flow from investing activities (122.4) (127.2) (132.3) (30.0) (30.0) (30.0) (30.0) (30.0)

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A B C D E F G H I J K
130 Common stock issuance 55.1 57.2 64.1 0.0 0.0 0.0 0.0 0.0
131 Cash Flow Available for Debt Servicing (CFADS) (67.3) (69.9) (78.3) (0.3) 10.5 31.2 32.1 42.5
132
133 Interest expense 0.0 0.0 0.0 (15.5) (16.0) (15.8) (14.8) (13.3)
134 Long term debt issuance 67.3 69.9 78.3 0.0 0.0 0.0 0.0 0.0
135 Cash flow before revolver 0.0 0.0 0.0 (15.8) (5.6) 15.4 17.3 29.2
136
137 Revolver beginning balance 0.0 0.0 0.0 0.0 15.8 21.3 5.9 0.0
138 Issuance (repayment) 0.0 0.0 0.0 15.8 5.6 (15.4) (5.9) 0.0
139 Revolver ending balance 0.0 0.0 0.0 0.0 15.8 21.3 5.9 0.0 0.0
140
141 Cash flow for long term debt repayment 0.0 0.0 0.0 0.0 0.0 0.0 11.3 29.2
142
143 Beginning long term debt 0.0 67.3 137.2 215.5 215.5 215.5 215.5 204.2
144 Debt issue 67.3 69.9 78.3 0.0 0.0 0.0 0.0 0.0
145 Debt repayment 0.0 0.0 0.0 0.0 0.0 0.0 (11.3) (29.2)
146 Ending long term debt 0.0 67.3 137.2 215.5 215.5 215.5 215.5 204.2 175.0
147
148 Revolver interest expense 0.0 0.0 0.0 (0.4) (0.9) (0.7) (0.1) 0.0
149 Long term debt interest expense (2.4) (7.2) (12.3) (15.1) (15.1) (15.1) (14.7) (13.3)
150 Total interest expense (2.4) (7.2) (12.3) (15.5) (16.0) (15.8) (14.8) (13.3)
151
152 Returns to equity holders
153 Cash flows to equity holders (assume no dividend (55.1) (57.2) (64.1) 0.0 0.0 0.0 0.0 515.0
154 Internal rate of return 19.5%

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