Typical Cash Flow Waterfall (Excel Template and PDF manual)

Description
The attached excel file contains a detailed and typical cash flow waterfall and the PDF manual covers the of concept of cash flow waterfall.

The cash flow waterfall or cash flow cascade is a statement that sets out the order of priorities for the use of cash revenues generated by the project.

This statement is mainly important during the debt repayment as it clearly defines the definition of cash flow available for debt service.

The order is documented in the loan agreement and different restrictions on cash flow are typically put in place in a project finance loan agreement to make sure that any payment to lenders is superior to payment to shareholders.

These cash restrictions may include dividend covenants, cash sweep mechanism, debt service reserve account.

The excel template contains a detailed typical cash flow waterfall. You can insert it within your financial model and adopt it to your project requirements.

- Cash flow waterfall key issues
- Example of a cash flow waterfall from a real project loan agreement
- Summary lines of a typical cash flow waterfall

One thing that is important to note here that when you are reviewing someone else’s finance model and it’s a project finance deal, then you need to make sure that a proper cash flow waterfall in included in the model.