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Shareholder Loans

Shareholder Loans are loans with "economic equity nature". This means they are considered subordinated compared to other cashflow positions. Therefore they are part of the Equity Payout in the Cashflow statement. Only the tax advantage because of interest effects from Shareholder Loans has an influence on the "Equity IRR" (Cashflow to Equity) while the redemption logic only influences the subordinated "Payout IRR" (Payout).

Compare the similar parameters from Debt Tranches.

Input FieldDescriptionValuePresetting

Name

Shareholder Loan nameFree text"Shareholder Loan" + Index

Driver

The following drivers are available:

 

 Driver details

Drivers

All available drivers in green[::]match. The column "Applicability" shows all section in which the different drivers are available.

Driver TypeDescriptionApplicability

Fix per Production Unit

Fix value input in Currency per Production Unit. The value is multiplied with the number of added Production Units.

For example: "EUR 20'000 per Production Unit and year" x 2 added Production Units" makes 40'000 EUR/a.

Template, Sales, Opex, Capex, Transaction Expenditures, Floor, Cap

Fix per Project

Fix value input in Currency per Project. The value is adopted without adjustments.

For example: "40'000 EUR/a per Project".

When for Start and End of the Date Choice Box "Production Unit Start" or "Production Unit End" is choosen in combination with this driver, the value is assigned to the Production Units pro rata.

Template, Sales, Opex, Capex, Transaction Expenditures

Production

The value input is in Currency  per hour according to the Unit and is multiplied with the Production per added Production Unit.

For example: "80 Eur/MWh with 1 added Production Unit with a production of 1'000 MWh/a" makes 80'000 EUR/a.

Template, Sales, Opex, Capex, Floor, Cap

 

Power

The value input is in Currency per Unit per per year and is multiplied with the Power per added Production Unit.

For example: "10'000 EUR/MW/a with 1 added Production Unit with an installed Power of 2 MW" makes 20'000 EUR/a.

Template, Sales, Opex, Reserves, Capex, Transaction Expenditures, Floor, Cap

Material

The value input is in Currency per Unit per year and is multiplied with the amount of material per year.

Sales, Opex

Sales

The value input is in percent and is multiplied with the Sales per added Production Unit.

Opex

Single per Production Unit

The value input is in Currency as single amount per added Production Units. 

Note: You should define as End the value Start + 1 month to receive a "real" single amount. Otherwise the single amount is divided through the months between start and end.

Sales, Opex

Single per Project

The value input is in Currency as single amount per Project. 

Note: You should define as End the value Start + 1 month to receive a "real" single amount. Otherwise the single amount is divided through the months between start and end.

Sales, Opex

Template

Adoption of a Template according to the selection. The calculation occurs according to the driver input from the selected Template.

Sales, Opex

Fix 

Fix value input in Currency. The value is adopted without adjustments.

Debt, Reserves, Shareholder Loans

Asset Purchase Price

The value refers to the percentage of the Asset Purchase Price.

Debt, Shareholder Loans

Capex

The value refers to the percentage of the sum of all Capexes, regardless if they are "Included in the Asset Purchase Price" or not.

Debt, Shareholder Loans

Next Debt Service

The Debt Service demand is orientated as percentage of the sum of the Debt Service from all Debt Tranches according to the Look Ahead Period. Thus the Reserve account demand is variable.

Reserves
EquityThe value refers to the percentage of Equity.Shareholder Loans

SelectionFix

Value

Input of a value proper to the selected driver.

Value in combination with driver0

Issuance Date

The Shareholder Loan Issuing Date is set with a Date Choice Box. For example: "Issuing at Transaction", this means Transaction + 0 months.

When the Issuing is before the Transaction Date (TRX), the book value is calculated automatically per Transaction Date as corrected Value per Transaction.

The entered month corresponds to the last day of this month. For example: A Due Date 01 /2015 means that the Issuing occurs per 01.31.2015 and the corresponding interest and reimbursements are calculated effective from 02.01.2015.

Date Choice BoxTransaction

Redemption Period

Periods in years in which the Redemption is applied. Redemption Free Periods are subtracted from the effective Redemption Period, because both periods are measured since Issuing Date. For Example: Issuing per 01 / 2015, Redemption Period 2 years and Redemption Free Period 12 months, this means the loan is issued on the 01.31.2015 and the redemption is applied from 02.01.2016 till 01.31.2017.

Years since Issuing Date0 Years

Redemption Mode

The following Redemption Modes are available:

Linear

Linear Redemption, this means the Issuing Value is divided by the redemption periods less redemption free periods and the resulting redemption value is constantly considered in the Cashflow Statement.

Annuity

Annuity, this means the sum of interest and redemption value are considered as a constant debt service in the Cashflow Statement.

BulletBullet Redemption, this means the whole loan is reimbursed at the end of the loan period.
Selection 

Interest for Annuity Calculation (Redemption Mode = Annuity)

Interest input in % or bps for the Annuity Redemption calculation. This interest rate is only used for the calculation of the redemption amounts and not for the actual interest payments.

 

 %

Redemption Free Period

Redemption Free Months/Years since Issuing Date.

Months since Issuing Date0 Months

Redemption Frequency

Frequency of the Redemptions since Issuing Date in Months/Years. For example: "quarterly", this means every 3 months. Compare the same logic in Payment Frequency at Methods of Payment.

Monthsmonthly

Interest

Annualized interest rate (nominal) which is executed on the Shareholder Loan of the previous period (this means after redemption of the previous period respective before redemption of the actual period). The interest charge is defined by the Method of Payment allocation (Interest) for the fixed Interest Period since Issuing Date. For periods afterwards the Longterm Interest Rate is used.

The Interest is composed by the Base Rate and the Margin:

Base RateDefined Interest Base Rate.
MarginAdditional Margin on the Base Rate in % or in basis points (bps).

Percent nominal per year or bps0%

Interest Period Fixed

Valid Period of the interest rate. For periods afterwards the Longterm Interest Rate is used.

Loan Period

The fixed Interest Period is valid for the whole Loan Period. Thus the longterm Interest Rate does not apply.

Custom

The fixed Interest Period is temporary. A time period in years has to be defined for the interest. After this time period, the longterm Interest Rate applies.

Fixed Interest Period = 0

A fixed interest period of Debt Tranches or Shareholder Loans of 0 years and a longterm interest rate of 0% can lead to an unintended errors! The interest according to the Debt Tranche or Shareholder Loan is in this case 0% despite a different interest input of for example 4% because in this case, the longterm interest rate of 0% is adopted after the fixed interest period of 0 years.

Years since Issuing Date0

Method of Payment (Interest)

Selection of the Method of Payment which is used for Interest payments:

Matched to Redemption

The interest payments matches with the Redemption payments. With Redemption payments every quarter for example, the interest payments will also occur every quarter at the same date.

Assign Method of Payment

The interest payments occur according to the Method of Payment:

Allocation of a Method of payment. For example: "first time at Transaction, every 3 month with a Target of 2 months". When no Method of Payment is used, the Profit & Loss statement is consistent with the Cashflow statement. Affected net current assets have a value of 0 in the Balancesheet.

Method of Payment allocationNone

Calculation

Shareholder Loans affect the Shareholder Loan calculation.