Sireletso Protective Group Business Plan — Funding Structure and Debt Service
The 45:55 equity to debt structure, drawdown, security offered and debt service cover across the projection period.
Funding Structure and Debt Service
Jump to section
- Overview & contents
- i. Important Notice
- 1. Executive Summary
- 2. Transaction and Funding Summary
- 3. Business Overview
- 4. Market Analysis
- 5. SWOT and Competitive Position
- 6. Service Offering and Revenue Model
- 7. Operations
- 8. Regulatory and Compliance Framework
- 9. Business Development and Client Acquisition
- 10. Management and Organisation
- 11. Financial Projections
- 12. Working Capital: The Central Finding
- 13. Funding Structure and Debt Service
- 14. Break-Even
- 15. Sensitivity and Scenarios
- 16. Risk Management
- 17. Implementation Roadmap
- 18. Investment Returns
- 19. Key Performance Indicators
- 20. Key Assumptions
- 21. Conclusion
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Application and Sources of Funds
- C. Appendix C: Debt Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
- 13.1 Term facility
- 13.2 Coverage
13.1 Term facility
|
Term |
Detail |
|---|---|
|
Facility amount |
R14 608’000 |
|
Interest rate |
13.75% (prime 10.50% plus 325 basis points) |
|
Tenor |
84 months from financial close |
|
Capital moratorium |
18 months, interest serviced throughout |
|
Amortisation |
66 equal monthly instalments following the moratorium |
|
Monthly instalment after moratorium |
R316 682 |
|
Security |
General and special notarial bonds; cession of insurance; limited suretyship |
13.2 Coverage
|
R million |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Term loan interest |
2.01 |
1.98 |
1.76 |
1.46 |
1.11 |
|
Term loan capital |
0.00 |
0.92 |
2.04 |
2.34 |
2.69 |
|
Total term debt service |
2.01 |
2.90 |
3.80 |
3.80 |
3.80 |
|
Debtor facility interest |
0.28 |
0.83 |
1.21 |
1.46 |
1.67 |
|
EBITDA |
(1.40) |
6.22 |
9.14 |
11.81 |
14.11 |
|
Term debt service coverage |
n/m |
2.14x |
2.41x |
3.11x |
3.71x |
|
Coverage on total finance cost |
n/m |
1.67x |
1.82x |
2.25x |
2.58x |
|
Total debt outstanding |
18.37 |
20.93 |
20.58 |
19.76 |
18.44 |
Coverage is not meaningful in Year 1 because EBITDA is negative; interest is serviced from the working capital reserve. From Year 2 term debt service coverage is 2.14 times and it strengthens throughout, reaching 3.71 times by Year 5. Against a 1.30 times covenant the base case carries comfortable headroom.