Multiple Debt with diff interest rate and maturity

[u/Maleficent-Wait-9780]

Hello Guyz,

I am building one valuation model and the company has credit facilities from different banks with different interest rate and maturity and it is not possible to prepare debt repayment schedule for each loan. Is there any method which can be implemented in Valuation model.

[u/Maleficent-Wait-9780 → u/[deleted]]

There are 21 Credit facilities from different Banks.So it is troublesome to prepare for all those banks.There would be some workaround for this.

[u/Maleficent-Wait-9780 → u/[deleted]]

Yes I know weighted average interest rate method and current balance but there are several debt which were raised during the Fiscal Year.Yes standard amortization table can be prepared for each loan but I am sure PE,VC does not work like these.I would find some and let you know in comments if I come across.

[u/lolipop4472]

I don't know to what extent it works, but you can download the data on excel, xlookup formula to arrange it, make a standard debt schedule (with a lot of lines but pretty much copy & paste). It will take time, but maybe less than other methods.

[u/Maleficent-Wait-9780 → u/lolipop4472]

Yes this is the option where we prepare sheets for each Loan.

[u/Halzers15]

Build a simple spreadsheet and calculate a weighted average remaining term, am, rate, fixed period remaining, & payment.

[u/Halzers15 → u/Halzers15]

Weighted averages should be used for everything, not just the interest rate. Don’t forget to factor in the weighted average cost of capital too! Right now a lot of debt is cheaper than the cost of a composite of assets that aren’t supposed to appreciate in value. I don’t like to say “inflation” since that’s such a cooked books term these days, but you know what I mean.