CREDIT ANALYSIS - BLANK MODEL SET: THE BOOK'S OWN INPUTS

Type these into the Inputs sheet of any of the four blank files (the Inputs sheet is the same in all four) and the book's results come back.
Rates are entered as decimals: 0.074 is 7.40 per cent. The switches in column C stay at 1.

   Inputs!B7     Revenue                                   285000000
   Inputs!B8     Statutory EBITDA                          24600000
   Inputs!B32    Maintenance capital expenditure           6200000
   Inputs!B33    Increase in working capital               1600000
   Inputs!B34    Cash tax                                  2100000
   Inputs!B38    Senior net debt                           120000000
   Inputs!B39    Interest rate                             0.074
   Inputs!B40    Base rate                                 0.034
   Inputs!B41    Amortisation rate                         0.05
   Inputs!B42    Leverage covenant                         4.25
   Inputs!B43    Cover covenant                            1.2
   Inputs!B47    Operating leverage                        2.2
   Inputs!B48    Revenue change in the downside            -0.08
   Inputs!B49    Enforcement costs                         0.06
   Inputs!B50    Probability of default                    0.04
   Inputs!B51    Covenant level after a reset              5.25
   Inputs!B52    Amendment fee                             0.01
   Inputs!B53    Margin ratchet                            0.005
   Inputs!B13    Add-back: restructuring                   3400000
   Inputs!B14    Add-back: run-rate savings                2900000
   Inputs!B15    Add-back: acquisition full-year effect    4200000
   Inputs!B16    Add-back: sponsor monitoring fees         1100000
   Inputs!B17    Add-back: share-based payment             800000
   Inputs!B18    Add-back: foreign exchange losses         600000
   Inputs!B24    Haircut: savings not yet actioned         1740000
   Inputs!B25    Haircut: acquisition capped               1800000
   Inputs!B26    Haircut: restructuring                    3400000
   Inputs!B27    Haircut: capitalised development          2200000

   Result: leverage 4.8780x statutory, 3.1915x management, 4.2164x lender, 6.4655x cash; cover 1.2473x;
   downside 5.1170x and 0.9107x; par multiple in default 5.4437x; expected loss 1.0608 per cent.

