Stage 7 (2021) “Debt Waterfall”

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Stage 7 (2021) "Debt Waterfall"

This is an actual case from the Financial Modeling World Cup 2021, Stage 7 (July 23-26) competition. This case deals with debt planning. It was created with the CFM exam in mind, however, everybody can use it to brush up on their skills in debt modeling.

Case description:

The objective of this case is to create a 20-year quarterly financial model that focuses on debt repayment and equity distributions for Niagara Investment Company (NIC). The debt modeling skills of FMWC participants who are preparing for the CFM exam will be improved through this case. Additionally, the case will also be included in the CFM case bundle, and even those FMWC participants who already have a CFM charter will be able to polish their debt modeling skills.

Niagara Investment Company (NIC) operates a hydropower plant in a fictional country called Niagaria. NIC is under a Public-Private Partnership structure and is expected to be handed back to the government after 20 years of operations. NIC hired you to help them forecast their debt and equity waterfall. The debt is structured in two tranches – senior debt and subordinate debt. Your goal is to create a 20-year quarterly financial model, with a focus on debt repayment and equity distributions. The project revenues will vary from quarter to quarter, and senior debt has a floating interest rate of 3m NIBOR + 2.5%. You must calculate the target quarterly DSCR rate of 1.75x for senior debt, which should be sculpted in such a way that it is repaid within a 15-year timeframe.

The downloadable file consists of the following:
-Task: PDF file with Case Materials; PDF file with Questions; Excel file with case assumptions
-Solution: Excel file with full Solution Model; PDF file with correct Answers in Bold

This model awarded 350 regular points + 50 Extra Points for a bonus question, while the whole 2h Stage allowed to earn 1,150 points in total.

For your questions/suggestions/consideration please reach out to the Organizing Committee of the Financial Modeling World Cup at
You can also buy tickets to participate in the future FMWC Stages at



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