Now that we have the interest on the syndicated loan, we need to compute the repayment for the operational years. And we're going to use a similar formula to the one we used for the revolving credit facility. We're gonna take the negative min of the beginning balance and the cash cashflow available for servicing this loan. We're gonna copy that to the right all the way until the end of the operational period. The next issue we need to deal with is our debt service reserve account.

And essentially what this is, is an additional protection to the lender that requires us to keep some cash in hand. And the cash is typically equal to six months to a year of interest and debt repayment. So here we're gonna compute it as next year's interest and debt repayment. And we're gonna start on the first operational year.

So here we can take next year's repayment for our syndicated loan, 296.6, and we can add to that the total cash interest expense of 62.1. Now in this case, we wanna make this number positive, so we'll put a negative sign in front of it.

Now we're ready to build our base calculation for our debt service reserve account. Now, before we had an initial estimate of our debt service reserve account estimated in our sources and uses tab. So let's go and get that number. And that was equal to 338.3. So let's bring that number over to our finance tab, and that's gonna be our beginning balance for the first year of operations.

Now let's calculate the cash after debt servicing. We're gonna start with our forecast of the unlevered free cash flow in row 13, and that's 194.8. We're gonna subtract interest expense, which will be a negative value in row 16, and that's gonna be filled out later. We're gonna add any future drawdown or repayment in our revolving credit facility. And finally, we're gonna subtract any repayments in our syndicated loans. For year one. We have a forecast of 149.8 for this repayment, and that's gonna give us a forecast of our cash after debt servicing of 44.9 in year one.

So now we can compute our forecast of dividends to equity holders.

Now this is gonna be a negative value in this row, so we're gonna start with a negative sign.

We don't want the dividend payout to go below 0, so I'm gonna use a max function of 0 and the calculation of dividends.

So dividends are gonna be computed by taking the beginning debt service reserve account balance. We're gonna add to it any cash after debt servicing. And then we're gonna subtract next year's forecast of interest and debt repayment from row 50. And that gives us a forecasted dividend payout of 24.6.

So to get our ending debt service reserve account balance, we can simply adapt these figures and we get a forecast of 358.7. And here you can notice that our ending debt service reserve account balance is exactly equal to our forecast of next year's interest and debt repayment. So let's now take all of our calculations and copy them to the right all the way until the end of our operational period.

And as you can see in year two, we have a forecast of dividends of 0. In fact, our ending debt service reserve account balance is below our forecasted next year's interest and debt repayment. But the situation is gonna improve in year three where we have sufficient cash after debt servicing, not only to cover our debt service reserve account, but to also pay a dividend amount of 89.8.

If we go further out in our timeline, you will see that roughly in the last four to five years of our forecast period, the debt service reserve account goes all the way to 0. In fact, in the last four years, any cash generated after debt servicing is fully paid out as dividends to equity holders.

And the reason for this is that our syndicated loan is fully paid by the end of 2027. So there is no need to hold a debt service reserve account any longer.