DSCR / EV
Say infrafund has secured acquisition financing sculpted on 1.5x DSCR which results in a total debt balance of $250m but my total EV using unlevered FCF and a target project IRR of 10% is only $180m. What happens in this scenario? Am I misunderstanding something.
Do I assume less debt, and if so, what would the cap. structure look like and how much equity would go in?
When calculating my equity IRR I am just solving for how much equity I can pay to achieve my target IRR and so should I just be adding debt on top of that to reach the EV at target project IRR?
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