Building a debt waterfall - Financial Modeling World Cup challenge from July 2021

[@yashshukla7131]

This was great, wiith multiple screens it was made simpler by your explanations. Also kudos on teaching new syntaxes. Thanks.

[@christoslefkimiotis9889]

Brilliant video in simple terms.Thanks for this

[@christopheredney6951]

Great video and tutorial, Diarmuid. I watched the full video on an iPhone and could follow along nicely. Thanks for putting this together.

[@DimEarly]

That’s great, glad to hear it worked that way!

[@HadynWiseman]

This was great! Easy to follow along and very informative

[@sachinmittal5308]

Hello Dim, This is a great video! Thank You. What are the missing components which appears in real life debt waterfall model for renewable project financing and is not there in this case study?

[@richieeasterly1728]

@32:47 What happens if you breach the cap on the revolver? What would eb the next steps on modeling that out? Is there a video or resources I can look to see how this would be modeled out? Thanks!

[@DimEarly]

That's really a business question rather than a modeling question. The simplest assumption would be that the business would go bankrupt (can't pay their bills and no more available credit), but you could also plausibly make assumptions about a high-rate last-resort financing option (e.g. maybe you can overdraw your bank account for a month or two, or get some kind of bridge loan if you have a near-term liquidity event coming) or about restructuring payments or something else depending on the business situation.

[@lucatintor4896]

@@DimEarly Very wise

[@TaylorRobinsonC]

Thank you for sharing! Where can I find the question guide you mentioned that says which topics will be covered? Is it on the website? I'll be competing for the first time this weekend - still trying to figure out how it all works. Thanks!

[@DimEarly]

Hi Taylor - they usually put it on their LinkedIn, and send an email with a link a few days before. Following the FMWC LinkedIn page is the fastest way to get it. Here’s the link for this weekend’s one: www.linkedin.com/posts/financial-modeling-world-cup_stage-1-2022-question-breakdown-activity-6892152180481032192-faS2