
Follow the golden rule: read and model exactly what's in the legal documents, because terms binding debtors and creditors dictate DSCR, LLCR, PLCR, and debt sculpting.
Understand CFADS, cashflows available for debt service, as cash revenues less essential cash expenses and taxes, measuring a project's ability to service debt and its link to DSCR.
Calculate the first llcr in excel by explicitly deriving the npv of future cfads using discount factors, then divide by the closing debt balance.
Explore how rolling llcr uses period-specific npvs and rebased discount factors to provide a dynamic, period-by-period view of debt service coverage.
Understand how DSCR, LLCR, and PLCR relate. When DSCRs are equal, the first LLCR equals the average DSCR, and when DSCRs are similar, LLCR is approximately the average DSCR.
Explore sizing and sculpting debt with variable cash flows using the NPV method. Discount future debt service to present value to determine loan principal and align repayments with forecast CFADS.
Explore how cfads raise cash for principal and increase initial loan size; longer terms or higher dscr sculpt debt service into smaller payments.
Deepen your theory and modeling concepts for dscr, llcr, and plcr in project finance debt ratios, enabling you to think clearly and efficiently about real-world problems.
Project Finance models are among the most complicated spreadsheet models in the whole of finance.
You have to deal with complexity on several fronts, and your prior experience outside of the field may have done little to prepare you for it.
Most project finance courses will serve you the entire skillset and theory you need as a modeler, all at once. But for many analysts I have spoken to, that is simply too much information at once. And in a well-intentioned effort not to overload students, course-makers end up leaving out many significant details.
This course takes a different approach.
It gives you a narrow, laser-focused examination of issues that are central to any project finance deal:
How much debt is going loaned to the company?
How is it going to be paid back?
Project finance models answer critical questions with mathematical procedures centred on project finance debt ratios.
This course will look at all the project finance ratios, along with mathematical explanations about how, and why they work… (instead of asking you to just copy them and trust that they do.)
You will finally gain clear-minded understanding, and be able to spot and avoid errors that trip other analysts up... and which may even be lurking in the model you have inherited.
All this will help you work, faster, more confidently, with lower risk of error - a great reward for your investment.