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Modeling a Direct Purchase Plan (DPP) for accounts receivable (Receivables sales facility)
I am currently trying to model a company that sells its receivables to an SPV (Special Purpose Vehicle). It receives cash when that entity securitizes the accounts and sells them to third parties. How might I model a fair market for these receivables before selling them? How might I model the cash...
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!
Why the rush to pay down outstanding borrowings on a credit facility?
I was reading about a company's announcement of a convertible preferred offering and the intent to use proceeds to pay down outstanding borrowings on its credit facility. I'm trying to get some clarity on why companies are always in a rush to pay down these borrowings. I understand the nature of...
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