Credit Analyst Series: Debt Service Coverage Calculations in Underwriting

12:00 pm – 1:30 pm PT
1:00 pm – 2:30 pm MT
2:00 pm – 3:30 pm CT
3:00 pm – 4:30 pm ET

Many community financial institutions rely on traditional EBITDA analysis in determining borrower repayment ability. But does EBITDA provide everything we need to know? What about considerations for capital expenditures and dividends provided to entity ownership? Are we missing key elements which drive the borrower’s ability to generate satisfactory cash to satisfy repayment requirements? This presentation will review traditional EBITDA analysis, including adjustments which should be considered to EBITDA in determining borrower repayment ability. It will address the Uniform Credit Analysis, specifically net cash after operations and UCA cash flow coverage. Other debt service coverage considerations, such as the free cash flow method for determining repayment ability, including considerations for capital expenditures and how these expenditures impact the borrower’s repayment ability will be included.

Further details will be available 45 days prior to the webinar date.

Attendance certificate provided to self-report CE credits.

NOTE:  All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your financial institution is prohibited. Print materials may be copied for eligible participants only.