Advanced - Capex Lines & Capital Leases
Some quick questions as I'm having some trouble modeling these:
1) Has anyone had any experience with Capex Lines? If so, what are the details on how they work and how would you model it? Never been involved on a deal that had one so I'm in the clouds about it...
2) I usually model the capital leases I amortize it with an PMT function in order to extract a uniform payment then just calculate the interest portion seperately (the % payment * outstanding balance) for the purpose for flowing it to the P&L... Anyone else have a different way of modelling it?
3) Converting the asset to a capital lease - purely swap the pp&e portion to a capital lease obligation on the liabilities side, increase cash by capitalized amount and then amortize and pay interest it over its life through the debt sched. Agree or disgaree?
Thanks.
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