Within the Capital Structure Settings tab, the user can define capital structure specific settings and optional termination terms. 

Capital Structure Settings:

 

  • 1st Interest Payment Date:

The first date in which the interest payments are due. The date must be after the earliest tranche settlement date (defined in the tranches tab). 

  • 1st Principal Payment Month:

The first month in which principal payments are due. The value is an integer, for example: if a user set the value to be 7, then on the cash flow report, they will see the principal first payment happens on the 7th month or 7th period. 

  • Collat Balance for Amortization:

The user has the option to choose if the collateral balance will be in the unpaid balance (UPB) or the performing balance in this drop-down.

  • Historical Data Methodology:

The user can choose if their cash flow reports display calculated values from the Historical Bond Table inputs or leave these blank in reports. The two options include:

    • Calculate Unpopulated Fields: Data fields or values that are not provided will be calculated for reporting and used in references or expressions.
    • Display Unpopulated Fields: Data fields or values that are not provided for historical data will be presented as blank for reporting and used in references and expressions.
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Due amounts rounding methodology:

All calculations on the platform are done to full precision, but the user can choose to round payments due and fund transfers to the nearest penny ($0.01)

Do not round: Every calculation is done to full precision. 

  • Round to 2 decimals: Calculations remain in full precision but, due and paid will be rounded to the full penny. 
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Optional Termination Fields

 

 

Optional Termination fields is a setting with an automatic trigger to rebuy all bonds back from the investors. Once these terms are reached and the Optional Redemption is triggered, the user will see it on the CF reports. As the periods stop appearing, the projections will continue to be calculated.

  • Basis for Call Price

The basis on which the Call Price is created on which can be set to loans (collateral), Dynamic Expression, or ADSAB (Aggregate Solar Discount Asset Balance) for solar deals.

  • Dynamic Expression Proceeds

The Dynamic Expression Proceeds need to be defined if the previous field is set to Dynamic Expression. 

  • Call Price

The Call Price can be set as a number or a vector (under the assumption that in different periods your threshold for rebuying the bond back is different).

  • Call Timing Based On

Preset Call Timing based on Outstanding Collateral Balance % or Dynamic Expression (the calculation for when to trigger the call can be defined based on how much of the collateral is paid, or on specific flexible dynamic expression). 

  • Optional Redemption

If Call Timing is based on Outstanding Collat balance, the threshold can be defined within Optional Redemption.

  • Dynamic Expression

If Call Timing is defined on Dynamic Expression, it can be defined within.

  • Redemption Account:

The Redemption Account identifies to which account the redemption will be paid from.  

 

Exercise the Call Option within the Scenario

 

Call Option:

Setting the Optional Termination terms at the Settings tab is not enough. This is merely an option that may be left unexercised. To exercise the option on the deal and see its impact on cash flow as presented above, one needs to turn on the toggle Call Option at the Scenario applied on the Cash Flow widget.

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