Debt Sculpting vs. Debt Sizing in Project Finance

[@financialmodeling]

Files & Resources: breakingintowallstreet.com/kb/project-finance/debt-sculpting-vs-debt-sizing/ Table of Contents: 0:00 Introduction 1:09 Part 1: The TL;DW of Debt Sculpting and Sizing 3:07 Part 2: Simple Debt Sculpting Example 4:49 Part 3: DSCR-Based Debt Sizing 7:10 Part 4: LLCR-Based Debt Sizing 9:25 Part 5: VBA to Automate Debt Sizing and Avoid Circ Ref’s 17:24 Recap and Summary

[@thomas4120a]

Most helpful Resource on Circularity and Debt Sizing I found after checking a ton of other resources for hours! Thank!

[@是熙]

Best debt sizing video I have watched so far...

[@financialmodeling]

Thanks for watching!

[@Martin-x7j]

Great video and files!

[@financialmodeling]

Thanks for watching!

[@pakaponwiwat2405]

Thank you, sir!

[@financialmodeling]

Thanks for watching!

[@nsriveros]

Excelent video. One question, how would you do the sizing if you add cash sweep (let's say, 50%)?

[@financialmodeling]

Thanks. Debt sizing is normally only based on the scheduled payments and interest because metrics like the DSCR are only based on these scheduled payments, not optional ones. So the cash sweep would be more of an optional addition that just results in the Debt being repaid earlier than expected. Some people might try to factor it in, and you could theoretically add the optional Debt repayments when calculating the DSCR and related metrics, but the standard definition is to include only scheduled ones.

[@TomasArancibia-s2b]

Awesome ❤

[@financialmodeling]

Thanks for watching!

[@johnfoo8400]

V useful

[@financialmodeling]

Thanks for watching!

[@lbj9264]

Great video ! From my understanding, the only issue with VBA is that you can’t build sensitivity tables since they don’t run VBA code. Is that correct ? Do you know what is the alternative ?

[@financialmodeling]

That is a downside to VBA in models, but you can get around this issue by building the sensitivity table manually using VBA. It's not that complicated, but it does take more code than you might think because of the way VBA works (there are a few examples in our Project Finance course).