All subjects
Advanced Project Finance Structuring
Coverage tests cash available for debt service against scheduled interest and principal.
Your starting point
Corporate Finance and Dealmaking
Can a profitable infrastructure project still miss a debt payment? Project lenders often size or sculpt debt around forecast cash available for debt service. Covenant definitions, reserve accounts and seasonality matter. Test coverage for each debt-service period.
Debt service coverageFoundation · Quick, Deep, ApplySize debt service to a covenantAdvanced · Quick, Deep, ApplyPrerequisite · Build a balance sheetUse the linked prerequisite and related topics to build your path.