Debt sculpting to target DSCR workbook
The workbook for this topic is on our debt sculpting tutorial page.
Repayments that follow the cash flow
Sculpted debt service is an important repayment method to build into a financial model, particularly where cash flows are seasonal or volatile. Some repayment methods are calculated without reference to the cash flow available for debt service (CFADS), which can lead to liquidity problems and ratio breaches.
This recorded webinar explains sculpted debt service and, through a worked example, shows how to calculate it and how it interacts with the debt service cover ratio (DSCR).
What you will learn
- The concept and theory behind sculpted debt service
- Why sculpting is preferred for projects with volatile or seasonal cash flows
- How sculpted debt service is calculated and how a target DSCR is applied
- The effect of sculpting on the ratios and on liquidity