A project is estimated to cost US$159 million, including construction period interest and all financing expenses. The project will be constructed pursuant to an EPC contract that guarantees completion in 18 months at a cost paid to the EPC contractor of US$150 million. At closing of the construction loan, an amount equal to 3% of the EPC contract amount will be paid to the EPC contractor to cover the costs of mobilization and other initial expenses. The remainder of the spending curve will be:

Quarter: _1_ _2_ _3_ _4_ _5_ _6_

Percentage of cost: 4.5% 10% 18% 33.5% 23.5% 7.5%

The project sponsor will make equity contributions of US$6 million per quarter (at the end of each quarter) during the construction period, for a total equity investment of US$36 million. A commercial bank has underwritten the construction loan on the following terms:

Financing commitment (i.e., loan amount): US$123 million

(Fixed) Interest rate (sum of swap rate plus credit spread): 6.5%

Upfront fee (i.e., paid at closing from the initial draw on the loan): 1.5% of the loan commitment amount

Unused fee (i.e., the rate used to calculate the fee applied to the portion of the financing commitment that remains undrawn at the end of each quarter, not at the completion of construction.): 0.25%

Please prepare a spreadsheet showing the draws on the construction loan (by category) and the final construction loan balance. Although draws to construction loans are typically made on a monthly basis, please prepare a quarterly model