Capex Facility - Drawdown
Hi all,
Let's say that you have a Capex facility with a tenor of 10 year to fund 70% of Capex. Let's say Capex is $20m per year. Do you draw everything in year zero, e.g. $140m, or do you do the drawdown each year, i.e. add $14m each year to your debt?
Thanks!
Hi Jacobi, whoops, looks like nobody chimed in here.... maybe one of these discussions below is relevant:
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Thinking from the perspective of basic corporate finance, ceteris paribus, no one in their right mind would want to incur the unnecessary additional interest burden and subsequent detrimental effect to FCF generation by drawing down on the entire facility at once vs. drawing down on an as-needed basis.
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