need answer for Leverage Covenant and Interest Covenant FCF Model ($mm) 2017PF 2018P 2019P 2020P 2021P 2022P 2023P 2024P 2025P 2026P 2027P Circuit Breaker Revenue 480 3 525 0 588 0 646 8 646 8 646 8 646 8 646 8 646 8 646 8 646 8 1 Growth 15 5 9 3 12 0 10 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 EBITDA 99 8 105 0 117 6 129 4 646 8 646 8 646 8 646 8 646 8 646 8 646 8 R C Interest Rate Margin 20 8 20 0 20 0 20 0 100 0 100 0 100 0 100 0 100 0 100 0 100 0 4 00 Interest Expense (5 4) (3 8) (2 0) (1 0) (1 0) (1 0) (1 0) (1 0) (1 0) (1 0) (1 0) R C Unused Cash Tax Expense (20 9) (23 5) (25 8) (129 0) (129 0) (129 0) (129 0) (129 0) (129 0) (129 0) 0 50 in NWC (11 1) (15 0) (14 0) 153 7 TLA Interest Rate Capex (18 4) (20 6) (22 6) (22 6) (22 6) (22 6) (22 6) 4 00 Dividend payments (4 2) (4 7) (5 2) (5 2) (5 2) (5 2) (5 2) Free cash flow 46 6 51 9 60 8 670 5 516 8 516 8 489 0 489 0 489 0 489 0 Cumulative free cash flow 46 6 98 6 159 3 829 9 1,346 7 1,863 5 2,352 5 2,841 5 3,330 4 3,819 4 1867 0 7 yr Payout Mandatory debt repayments Cash available for debt service 46 6 51 9 60 8 670 5 516 8 516 8 489 0 489 0 489 0 489 0 Cumulative free cash flow for debt service 46 6 98 6 159 3 829 9 1,346 7 1,863 5 2,352 5 2,841 5 3,330 4 3,819 4 R C Commitment Year Ended July 31, 200 Covenant Projections ($mm) 2017PF 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E TLA Commitment R C facility 126 0 79 4 27 4 0 Term Loan A TLA Amortization Total Debt 126 0 79 4 27 4 Leverage Covenant Leverage Ratio 1 26x 0 76x 0 23x 0 00x 0 00x 0 00x 0 00x 0 00x 3 50x Leverage Covenant 3 50x 3 50x 3 50x 3 50x 3 50x 3 50x 3 50x 3 50x 3 50x 3 50x 3 50x EBITDA Cushion ($) 63 78 82 32 109 76 129 36 646 80 646 80 646 80 646 80 EBITDA Cushion ( ) 63 92 78 40 93 33 100 00 100 00 100 00 100 00 100 00 Interest Covenant Interest Coverage Ratio 18 44x 27 79x 59 99x 129 36x 646 80x 646 80x 646 80x 646 80x 3 50x Interest Coverage Covenant 3 50x 3 50x 3 50x 3 50x 3 50x 3 50x 3 50x 3 50x 3 50x 3 50x 3 50x EBITDA Cushion ($) 80 84 91 78 110 74 125 86 643 30 643 30 643 30 643 30 EBITDA Cushion ( ) 81 02 87 41 94 17 97 29 99 46 99 46 99 46 99 46

The Answer is in the image, click to view ...

Question: need answer for Leverage Covenant and Interest Covenant FCF Model ($mm) 2017PF 2018P 2019P 2020P 2021P 2022P 2023P 2024P 2025P 2026P 2027P Circuit Breaker Revenue

need answer for Leverage Covenant and Interest Covenant

	FCF Model ($mm)	2017PF	2018P	2019P	2020P	2021P	2022P	2023P	2024P	2025P	2026P	2027P
Circuit Breaker	Revenue	480.3	525.0	588.0	646.8	646.8	646.8	646.8	646.8	646.8	646.8	646.8
1	% Growth	15.5%	9.3%	12.0%	10.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
	EBITDA	99.8	105.0	117.6	129.4	646.8	646.8	646.8	646.8	646.8	646.8	646.8
R/C Interest Rate	% Margin	20.8%	20.0%	20.0%	20.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%
4.00%	Interest Expense	(5.4)	(3.8)	(2.0)	(1.0)	(1.0)	(1.0)	(1.0)	(1.0)	(1.0)	(1.0)	(1.0)
R/C Unused	Cash Tax Expense		(20.9)	(23.5)	(25.8)	(129.0)	(129.0)	(129.0)	(129.0)	(129.0)	(129.0)	(129.0)
0.50%	in NWC		(11.1)	(15.0)	(14.0)	153.7	-	-	-	-	-	-
TLA Interest Rate	Capex		(18.4)	(20.6)	(22.6)	-	-	-	(22.6)	(22.6)	(22.6)	(22.6)
4.00%	Dividend payments		(4.2)	(4.7)	(5.2)	-	-	-	(5.2)	(5.2)	(5.2)	(5.2)
	Free cash flow		46.6	51.9	60.8	670.5	516.8	516.8	489.0	489.0	489.0	489.0
	Cumulative free cash flow		46.6	98.6	159.3	829.9	1,346.7	1,863.5	2,352.5	2,841.5	3,330.4	3,819.4

									1867.0%	7-yr Payout

	Mandatory debt repayments		-	-	-	-	-	-	-	-	-	-
	Cash available for debt service		46.6	51.9	60.8	670.5	516.8	516.8	489.0	489.0	489.0	489.0
	Cumulative free cash flow for debt service		46.6	98.6	159.3	829.9	1,346.7	1,863.5	2,352.5	2,841.5	3,330.4	3,819.4

R/C Commitment			Year Ended July 31,
200	Covenant Projections ($mm)	2017PF	2018E	2019E	2020E	2021E	2022E	2023E	2024E	2025E	2026E	2027E
TLA Commitment	R/C facility	126.0	79.4	27.4	-	-	-	-	-	-	-	-
0	Term Loan A	-	-	-	-	-	-	-	-	-	-	-
TLA Amortization	Total Debt	126.0	79.4	27.4	-	-	-	-	-	-	-	-

Leverage Covenant

Leverage Ratio

1.26x

0.76x

0.23x

0.00x

3.50x

Leverage Covenant

3.50x

EBITDA Cushion ($)

63.78

82.32

109.76

129.36

646.80

EBITDA Cushion (%)

63.92%

78.40%

93.33%

100.00%

Interest Covenant

Interest Coverage Ratio

18.44x

27.79x

59.99x

129.36x

646.80x

3.50x

Interest Coverage Covenant

3.50x

EBITDA Cushion ($)

80.84

91.78

110.74

125.86

643.30

EBITDA Cushion (%)

81.02%

87.41%

94.17%

97.29%

99.46%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

the yellow squares need to be filled in Executive summary Transaction overview Davis Industries Corporation ("Davis Industries" or the "Company") is a medical devices manufacturer that delivers...

Question 1 Cora PLC is a listed and well-established supermarket chain operating through much of the UK. Its summarised financial statements for the last 3 financial years, 2017 to 2019, are below:...

Part 1 (19 marks) Over a 5-year period, Major Parts Ltd completed the following transactions affecting Non-Curren assets in its financial years ending 30 June. The company uses straight-line...

Read the financial covenant below and answer both parts to the question: Financial Covenant Certain borrowings contain a consolidated leverage covenant. The covenant states the Company's leverage...

Read the financial covenant below and answer both parts to the question: A) Please describe what this financial covenant is designed to do. Essentially explain what economic behavior its designed to...

QUESTION 3 (15 marks) On 1 July 2021, Rivaldo Ltd borrowed $50 million to finance an investment in a laboratory for developing and testing surgical supplies. The loan is due 30 June 2031. The lender...

Hi, please help me on how to do this question? I need an explanation about the question as well. Thanks. The borrowing of Cora PLC is subject to financial covenants tested on a yearly basis. The...

Financial Reporting and Analysis On March 14, 2019, Core Molding Technologies, Inc. filed a Form 8-K disclosing an amend- P8-4 ment to one of its borrowing agreements as follows: Covenant violation...

agning offs (T)he Borrowers and the Lenders agreed to modify certain terms (1) implementation of an availability block on the U.S. Revolving of the A/R Credit Agreement. These modifications included...

? Following are the terms of a lease entered into on January 1, 2020. [LC] FMV of asset at inception oflease Estimated residual value of asset at lease termination Portion of residual value...

A partial statement of financial position of Sunland Ltd. on December 31, 2019, showed the following property, plant, and equipment assets accounted for under the cost model (accumulated depreciation...

Which of these retirement plans, maintained by an eligible employer, would also permit the employer to establish a SIMPLE IRA? A ) Section 4 0 3 ( b ) plan B ) Union plan bargained in good faith C )...

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".