UK Infrastructure
Financing Model Build

The Challenge

The client was going through a period of restructuring. While they had a financing model, it took a long time to run due to manual manipulation, varied data sources, and a lack of flexibility. 

An accurate model was seen as critical from both internal and external perspectives to help expedite ongoing negotiations. 

It was decided to build a model from scratch, but the treasury team lacked Excel expertise, while the FP&A team did not thoroughly understand the group’s capital structure. We were asked to work with both teams to design a flexible tool for the current and proposed variety of bonds, swaps, and revolving facilities in place.

The Solution

We first analysed the existing capital structure and reviewed documentation to ensure a thorough understanding of senior and junior covenants. 

Our next step was to consult with the commercial team to understand operational cashflows and potential changes in working capital requirements. After gathering historical information, market data, and business forecasts, we commenced the model build.

Our model was able to show business as usual, with the existing capital structure, while containing an overlay module that optimized financing based on user input constraints and identifying potential breaches through sensitivity analysis. The outputs were designed to easily slot into a group planning model, which shareholders and management used in making structured decisions to support their long-term capital expenditure plan for infrastructure renewal and a potential exit scenario.

The Outcome

The new model could be run in half the time historically spent on the process while providing greater insight. The business is now well-placed for a successful refinancing and credit rating process. The model continues to be used for planning capital restructuring.

Other case studies

Get in touch with us

George Pavlovic ACA
Director, Financial Modelling
Aleksandra Pavlovic FCCA
Director, Financial Modelling

Testimonials

Latest resources