GPU borrowing-base model
Vary fleet value, advance rate, value decline and contract cash coverage to see how much debt a GPU fleet can support over time.
Your own assumptions, in US$ millions. Capacity is the lower of the asset test and the contract-cash test, after reserves, month by month.
Original scenario tool · no deal terms preloaded
Your assumptions
Hypothetical USD millions. No deal terms are preloaded.
● Modelled debt capacity● Scheduled debt
60-month view. The model does not assume renewal after the selected contract ends.
A two-limit illustration
Asset limit = initial fleet value × (1 − annual value decline)month / 12 × advance rate.
Contract limit = eligible annual net contract cash × remaining contract months / 12 × (1 − haircut).
Debt capacity = max(0, min(asset limit, contract limit) − fixed reserve). Scheduled debt = initial debt × max(0, 1 − month / loan months). Headroom = capacity − scheduled debt.
The contract limit is an undiscounted cash-coverage proxy, not a contractual borrowing base or DSCR test. It excludes interest, fees, taxes, cash-flow timing, defaults, replacement cost, GPU eligibility tests and valuation shocks. Decline is a constant geometric assumption, not a residual-value forecast. A negative headroom is a modelled gap, not an actual covenant breach.
At a 100% annual value decline the model sets value to zero from month one; month zero retains its initial value. Cash reserves are deducted once from each capacity observation and do not grow or release.
Read about residual-value risk →