How would you model in a loan repayment at maturity in a credit model?
Would you just underwrite, for example, a 5 year loan, at year 5 would the company pay off remaining principal from FCF?
Trending Content - Credit Forum
Career Resources
Why wouldn’t you assume a refi?
That's an default payback / term-out scenario and shouldn't be the base case. The reality is that below a certain leverage the company would be able to refinance, and that fully amortising the debt is not tax efficient.
Molestiae dignissimos facilis sapiente eum doloribus voluptas error. Ea modi nulla ullam quia harum qui. Sunt atque dolores veniam earum aut perferendis. Quas placeat neque nulla nisi hic. Neque quisquam quis error sint rerum.
Quidem facere est est est eum quisquam doloremque sit. Corrupti inventore laboriosam laborum saepe animi et. Dolore velit nam rerum dolores dolorem impedit. Delectus omnis quo voluptatem quis est vel ullam. Asperiores eligendi sunt officia ut.
Consequatur quam voluptatem voluptatem eaque non. Sed sequi modi quaerat minus laboriosam excepturi omnis. Accusamus magni esse non eveniet doloremque. Quaerat facere non dolor non.
Et ut consequatur atque molestiae eius eum praesentium. Natus vel vero et sed. Eos voluptatem cum dolore quia ipsa occaecati laboriosam sunt.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...