Description

Understand the mechanics to modeling a loan repayment with a debt service coverage requirement.

Learning Objectives


  1. Recall how to model different loan amortization methods.
  2. Calculate the Debt Service Coverage Ratio (DSCR).
  3. Use the DSCR in a project finance model.
  4. Calculate a loan's average life.
  5. Calculate a Loan Life Coverage Ratio.
  6. Recall the definition of security in loan agreements.
  7. Determine the role of covenant suites in loan agreements.
  8. Determine what happens when a covenant is breached.