PF 2205 lec 9

Lenders prefer financing a project through

• Parent company/investors directly

• Project Company (SVC)

Original lenders are generally ... to refinance a loan

• Excited

• Reluctant

Refinancing resulted in higher NPV/IRR due to

• Lower interest rate

• Delaying the loans

• Additional loan raised

• All of the above

Secondary equity sales help original investors by

• Exiting the project and eliminating risks

• Increasing their NPV/IRR

• Releasing their locked capital

• All of the above

Cash-out refi is preferred over selling equity when

• Interest rates are high

• Assets have potential future appreciation

• Investors want to eliminate their risks

• None of the above