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Refinancing Risk and Maturity Walls

Build a funding timeline, stress refinancing access, and identify which bonds are most exposed.

These prompts are original practice. They are not questions from a named employer or a live hiring loop.

The first funding gap

All figures are millions. Harbor Cable begins January with 90 unrestricted cash and a 25 minimum. It earns 15 by March and 10 more by June after operating costs and capex. March debt of 65 and June debt of 50 mature at month-end. No refinancing is available in the stress case.

  1. 1.How much cash is usable at the start?

  2. 2.What is cash immediately after the March payment?

  3. 3.What is March headroom over the minimum?

  4. 4.What is projected June cash after payment?

  5. 5.What is the June gap against the minimum?

  6. 6.If March operating cash is 10 lower, when is the first floor breach?

  7. 7.What single external funding amount in June restores the floor in the original stress?

  8. 8.Which note faces the first maturity with insufficient cash in the original case?

  9. 9.What would a July asset sale change for the June payment?

  10. 10.What should a credit memo lead with?

Revolver headroom

Borough Parts has a 120 facility, 50 drawn and 10 reserved for letters of credit. Its covenant limits total drawings plus reservations to 85 in stress. The facility expires in September. A 45 bond matures in October. Standalone cash available for October is 20. Assume any drawn amount must be repaid at facility expiry absent renewal.

  1. 11.What is nominal undrawn headroom?

  2. 12.What is usable stress headroom before expiry?

  3. 13.How much does nominal headroom overstate stress capacity?

  4. 14.Can an unrenewed September draw fund the October note on a lasting basis?

  5. 15.If renewed on the same terms through December, is stressed headroom enough to fund the October gap?

  6. 16.What if the letters of credit rise by 5 before October under renewed terms?

  7. 17.What if the covenant cap falls to 55 before any draw?

  8. 18.What evidence would support treating renewal as a base-case source?

  9. 19.Why track the line expiry before the bond maturity?

  10. 20.What liquidity number belongs beside the 120 headline?

Entity cash

All figures are millions. Pine Ferry's parent owes a bond of 75 in July and has 30 cash. Its wholly owned operating company has 110 cash, 45 needed for operations, and a 50 local loan due in June. Local documents cap upstream distributions at 10 before July. No other funding is available.

  1. 21.What residual cash is economically available after the operating reserve and local loan?

  2. 22.What is the maximum timely upstream amount under the cap?

  3. 23.What cash can the parent apply in July?

  4. 24.What is the July funding gap?

  5. 25.How large is the gap if the cap is waived, holding local obligations fixed?

  6. 26.If local cash declines by 12, what can be transferred under the original cap?

  7. 27.Why does 140 consolidated cash overstate parent repayment capacity?

  8. 28.Which payment should the timeline place first?

  9. 29.What changes if a permit allows 20 upstream but the local reserve remains?

  10. 30.What data could reduce uncertainty about this path?

Refinancing economics

Cinder Packaging has a 200 note at 4% due in August. A new five-year issue could raise 180 face at 97 with 2 of upfront cash fees. New coupon is 8%. It has 35 cash available for the takeout. Use millions and ignore accrued interest.

  1. 31.What are net cash proceeds from the new issue?

  2. 32.How much cash must the issuer contribute to repay 200?

  3. 33.How much takeout cash remains after the contribution?

  4. 34.What is the old annual coupon expense?

  5. 35.What is the new annual cash coupon expense?

  6. 36.How much does annual cash coupon expense rise?

  7. 37.If the issue prices at 93 instead of 97, what cash buffer remains?

  8. 38.If cash flow after old interest was 10, what follows after the coupon increase alone?

  9. 39.Why compare face, price, and fees?

  10. 40.Which next risk remains after a successful issue?

Partial market access

Quartz Services has 55 usable cash entering May, earns 20 by July, and owes 120 in July. Market access might provide 100 in a normal case, 60 in a constrained case, and zero if closed. Assume funding arrives before maturity and no other payments.

  1. 41.What is internal cash at maturity?

  2. 42.What is the minimum external funding required?

  3. 43.What surplus remains in the constrained case?

  4. 44.What shortfall occurs with no access?

  5. 45.If cash earnings are 18 lower, does constrained access suffice?

  6. 46.At 25% closure odds, what is expected funding shortfall across the three original cases?

  7. 47.Why disclose the closure-case gap alongside its expected value?

  8. 48.What if new financing arrives one week after maturity?

  9. 49.Which metric should track market access near the deadline?

  10. 50.What helps compare the July note with a longer note?

Collateral financing

Mistral Rail owns 160 of eligible assets and owes 80 on a secured line. Advances equal eligible value times one minus the haircut. The haircut rises from 25% to 40%, and eligible value falls to 130. It has 20 free cash and a 30 bond maturity next month.

  1. 51.What was borrowing capacity before stress?

  2. 52.What is capacity after both shocks?

  3. 53.What immediate paydown is needed to restore the borrowing base?

  4. 54.What cash remains after the paydown?

  5. 55.What funding gap remains for the bond absent other flows?

  6. 56.At 130 collateral value and the original haircut, what would capacity be?

  7. 57.At 40% haircut, what collateral value supports the original 80 borrowing?

  8. 58.What is the effect of selling already pledged assets without lender release?

  9. 59.Why might an extra secured issue hurt unsecured holders?

  10. 60.What should the risk review link explicitly?

Asset sale bridge

Alder Transit owes 140 in December. It has 70 usable cash and expects 15 operating cash by then. An asset sale is quoted at 80 gross, with 6 of fees and 19 of secured debt to release. The buyer can close in December or slip to February. A bridge of 40 is committed and drawable by December. All figures are millions.

  1. 61.What is the gap before the sale or bridge?

  2. 62.How much usable cash would the sale generate?

  3. 63.What December gap remains if the sale closes on time and the bridge is unused?

  4. 64.If the sale slips and the full bridge is drawn, what gap remains?

  5. 65.What gross sale price would cover the original gap if fees and release costs are fixed?

  6. 66.If gross price falls to 72 and closing is timely, what bridge draw fills the residual?

  7. 67.What event makes the sale proceeds count in December?

  8. 68.What must a bridge forecast show after December?

  9. 69.If the lender requires the sale contract as a condition to draw, what should be checked?

  10. 70.Why show a delayed-sale scenario even with a signed agreement?

Tender and extension

Metro Loom has 150 debt due next year. It offers to exchange tendered notes at par into five-year notes. At 70% acceptance it uses 12 in fees and incentives, has 48 of free cash after fees, and no other funding. Non-tendered bonds retain their original terms.

  1. 71.How much face is extended at 70% participation?

  2. 72.How much face remains due next year?

  3. 73.How much cash headroom remains at 70%?

  4. 74.With 48 cash fixed, what minimum acceptance makes the residual payable?

  5. 75.At 60% acceptance and fixed 48 cash, what is the gap?

  6. 76.If new notes pay 9% and old notes paid 5%, what extra annual interest accrues on the extended 105?

  7. 77.Why can the non-tendered notes become riskier even as aggregate near maturities fall?

  8. 78.What needs verification before modeling tender success?

  9. 79.What should the longer-term ladder include?

  10. 80.What could change recovery comparisons between tendering and holding out?

Covenant timing

Fable Resorts has 70 cash, a 30 minimum, and 15 positive free cash flow before a 60 bond maturity. A 40 revolver is available only if net leverage is at most 5.0×. Net debt is 240. EBITDA is 50 in base and 44 in downside. Assume no line draw is permitted if the test fails.

  1. 81.What is base net leverage?

  2. 82.What is downside net leverage?

  3. 83.What EBITDA is the minimum to pass at 240 net debt?

  4. 84.What usable cash is available before maturity while preserving the minimum?

  5. 85.What funding gap remains in downside?

  6. 86.How much net debt reduction would make 44 EBITDA pass?

  7. 87.What if EBITDA is exactly 48?

  8. 88.Why should the analyst test leverage at the draw date?

  9. 89.What should a waiver scenario assume before written approval?

  10. 90.Which weakness matters even though the gap is only 5?

Comparing bonds at the wall

Mica Towers has 95 unrestricted cash, a 20 minimum, and no operating cash growth under stress. A 50 note matures in May, a 55 note in September, and a 90 secured bond the following year. No new funding is assumed. The May note is paid as scheduled in this exercise.

  1. 91.How much cash remains after May?

  2. 92.What is cash available for September while respecting the minimum?

  3. 93.How large is the September gap against that minimum?

  4. 94.If the minimum is dropped, what cash gap still remains in September?

  5. 95.Which debt hits the first uncovered date?

  6. 96.If the September note defaults, what could affect the later secured note before its own maturity?

  7. 97.What should be compared when ranking September and the later secured bond?

  8. 98.An equity raise brings 35 before September. What floor headroom remains after payment?

  9. 99.What if that equity raise arrives after September payment is due?

  10. 100.What warning should the memo pair with an apparently safe May note?

  11. 101.Which trigger would justify updating the credit call?