Financial Modeling
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How to model for existing revolver
Having worked through core model and enhancement classes, I am now trying to recreate this model for a new company. My question is that the new company already has an existing revolver with an outstanding balance. My initial instinct is to treat the outstanding balance on the revolver as a term loan...
Having worked through core model and enhancement classes, I am now trying to recreate this model for a new company. My question is that the new company already has an existing revolver with an outstanding balance. My initial instinct is to treat the outstanding balance on the revolver as a term loan with no mandatory repayments until maturity when it all comes due. Then I use the "new" revolver created in the model to handle the debt sweep for any additional borrowings necessary to the firm. Is this the best practice to handle this situation, or should I be working with the existing revolver and the remaining available balance on it before new borrowings flow down to the "new" revolver?
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by Guest 1.
added 11 years ago
