2013 Round 1: Acquisition Financing

Description
This modeling task is taken from the first round of the 2013 Modeloff financial modeling world championships.

Follow the instructions in order to complete the model and questions:

INTRODUCTION

You’ve been asked to prepare a model to forecast the performance of a multiple tranche debt facility that will be drawn by an investment fund to purchase assets. The facility is only drawn when it is needed to finance the purchasing of an asset in to the fund, and each asset purchased will map to its own tranche in the facility.

TRANCHE DETAILS

The facility is forecast to have 4 tranches. Details of each tranche are given in the attached PDF.

INTEREST BASIS AND TIMING ASSUMPTIONS

Assume that all interest is calculated on a 30/360 basis on the opening daily balance. All interest rates given are simple annual rates (not effective-annual compounding rates). All cash flows, payment dates and interest accrual dates occur on calendar quarter end dates.

Use this guide to construct a financial model to forecast the performance of the debt facility. This will allow you to then answer the questions that can be found in the attached PDF file.

Allotted time: 40 minutes

Once finished, feel free to upload your model to your own dedicated author channel!