Wall Street Prep

Common Sections of a Project Finance Model

This is a simplified representation of a Project finance model structure. Each of these blocks (e.g. “Cons”) represents a different calculation module. The cast of characters here is Ops = Operations, D&T = Depreciation & Tax, Cons = Construction, FS ... Read More

Distinctive Features of a Project Finance Model

Project finance models generally share the following features: Scrutiny on construction, modeled monthly A focus on optimizing debt Long term operations, modeled quarterly or semi-annually Not a going concern, therefore cash focused Hierarchy - the Cashflow Statement becomes the Cashflow ... Read More

Debt sizing Macro for Project Finance: Example with VBA Code

In this article, you'll learn how to build a debt sizing macro commonly used in project finance models.  The debt sizing macro is simply a copy / paste macro, which calculates debt sizing through either a gearing ratio, or DSCR ... Read More

Debt Sizing in Project Finance

Debt sizing refers to the project finance model mechanics for determining how much debt can be raised to support an infrastructure project. The amount of debt that can be raised is defined in the debt term sheet and is usually ... Read More

Debt Service Coverage Ratio (DSCR)

If the most important line item in a project finance model is the CFADS, then the most important ratio is the Debt Service Coverage Ratio (DSCR). DSCR is calculated as CFADS divided by debt service, where debt service is the ... Read More

Cash Flow Available for Debt Service (CFADS)

Cash flow available for debt service (CFADS) is arguably the most important metric in project finance because it determines how much cash is available to all debt and equity investors. Conceptually similar to unlevered free cash flows,  and calculated as ... Read More

Corporate Finance vs. Project Finance

Project finance is the financing of large, long term infrastructure projects. But theoretically, companies can still "corporate finance" an infrastructure project. So what really separates project finance from other types of finance? The answer is twofold: In corporate finance, lenders ... Read More

Project Finance: Free Online Course

Welcome to Wall Street Prep's free online course on Project Finance!  Project finance refers to the funding of large, long term infrastructure projects such as toll roads, airports, renewable energy using a non-recourse financing structure, which means that debt lent ... Read More

Impact of TCJA on the Dividends Received Deduction

In addition to the headline impacts of TCJA, a lesser known change affects dividends received deductions ("DRD"). As we discuss in detail in our advanced accounting course, the dividends received deduction ("DRD") exists to prevent companies that are shareholders in ... Read More

Sales & Trading Salary Guide

A sales and trading has a similar comp structure to investment banking, comprised of a base and a bonus. For a sales & trading "Analyst 1" (an analyst's first full year after completing the July-December "stub" period), base and bonus ... Read More

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The Wall Street Prep Quicklesson Series

7 Free Financial Modeling Lessons

Get instant access to video lessons taught by experienced investment bankers. Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts.