We're now ready to move on to junior debt. We need to work out how much cash is available to service junior debt. Cash just available for junior debt. In other models that you might have seen, you might have taken the cash available to the previous tranche or previous debt, and what you probably did was just a deep mandatory and perhaps accelerated if it was that kind of model. Here, however, we do need to take into account that we may be issuing debt and that is a genuine cash flow.

We'll also need to take into account of course payment and then as opposed to previous models you may have seen, we also need to take into account interest and the reason is that we started this whole thing off with EBITDA. The interest has not been taken into account yet.

Now, if you're building along with me and you are trying to check your work against say a complete file or a full file, we've started to get into quite uncomfortable territory here and that's because this whole thing is connected. Now you can see that we haven't got down to closing cash yet, and because of that, the closing cash hasn't become starting cash above and because of that it hasn't been added to the cash available for junior debt and so the whole thing looks very lean.

It will make more sense once it's all linked up, so let's keep going.

Now, the beginning debt, just like before is zero. We'll go and fetch issuance and we'll go and grab it from the sources and uses.

The mandatory payment again is that complex formula that we saw before.

Okay. I've just fast forwarded that a little bit and done it while pause the video so you don't have to watch me type it out. You can see it's working because we have the drawdown, then we have the grace period, and then we have the grace period elapsing, and we have a repayment on the schedule of 18 years and we have min there that's governing it and making sure that it won't go below zero.

Similarly, I've fast forwarded the interest there a little bit.

Okay. You can see again, we've got that happening. If the IDC period has elapsed and we've got as a negative, that brings us to equity. It might seem a bit odd to have equity in the debt tab, but what we're doing here is a kind of alternative cash flow statement, and so if we want this thing to be checked to the regular cash flow statement, which is desirable, we do need to put on all cash flows and that includes issuance of equity. We can grab the issuance of equity from source and uses.

Here it is on row 60 and what you can see is it's starting to bridge the gap between what we need and what We've got and things are starting to come together in quite a satisfying way. The cash after financing, we are going to take cash available for junior debt. It's tempting just to add the equity, but there's more going on. Issuing debt, we may be repaying that debt, again, paying interest on it, which hasn't been covered by the EBITDA start to this version of the cashflow and now we've added in issuance equity. We pulled that to the right. We'll find that that covers our capital phase quite nicely and then we have an excess as the project starts to ramp up.