In this recording, I don't want to do any building in the model. I want to do a review, do some analysis of the debt schedule, and see how those acceleration switches and accelerated repayments affect the amount of cash we've got in the company and the amount of debt. You may have noticed that I've copied all of my figures to the right, so we can see what's going on. We don't have any interest in this model at the moment, but we can still do some analysis. So in year 51, we've got 21,149.2 of cash available to service debt. We use 9,000 for a mandatory repayment on debt one. We put some aside for minimum cash. And then we pay off the short-term borrowings. And the remainder, 6,080, is used as an accelerated repayment on term loan one and then the remaining 80 on term loan two. But what happens after that? Well, in year 52, very similar, you end up with some excess cash and you use it on that second term loan.

Year three, similar again, but year four, something different happens. In year four, we've got 9,916.7 of cash, but we then spend 10,000 making a mandatory repayment, that's of the bond. We've then also got to put some extra cash available from our minimum required cash. So what happens is that we actually have to take out a short term borrowings again. We need an issuance.

That brings our accelerated cash back to zero. We can't then do any other payments.

But in the final year, we've got 13,573 of cash. We've put some of it aside for minimum required cash. And then we pay off the short term borrowings and then the rest goes on debt tranche three. Let scroll down and have a look at actually. Of the 10,859 available, now we use 7,481 of it to pay off our last, debt tranche three, the second term loan. And you've even got 3,378 available. Great, that's kinda useful. That's really cool to see how the debt repayments, to see how the mandatory debt repayments and the accelerator repayments come together. But now, let's change things around a little bit. What if the first term loan, the 4.625% term loan, what if that did not allow accelerated repayments? Let's turn the acceleration switch to a zero and we see that 6,000 accelerated repayment disappears. However, it moves straight into year two because you've got a mandatory repayment there. This leads to a big change in year two, because in year two, we only had 3,056.2 of cash but we then had to make a mandatory repayment of 6,000. We then put extra cash aside from a minimum required cash, meaning we've got a short-term borrowing requirement. So we actually end up with the short term borrowing issuance in year two in this scenario. That then gets paid off in year three. Year four, we have the large mandatory repayment of the bond again, requiring us to have another issuance of the short term borrowings, which then gets paid off in year five. So just by flicking that acceleration switch for that first term loan changes our crunch years. In this example, I need a short-term borrowing issuance in year two and in year four, whereas if we did have the accelerated repayments available for term loan one, we only had the short-term borrowing issuance in year four. I'm gonna turn this switch back on and now this model is back to as it was from the start.