Senior debt LVR test
Read peak debt against the LVR and LCR your senior is offering. Confirm headroom or flag the gap.
Use case · capital
Size the stack to the cashflow.
Popurise builds the senior facility and the equity quantum off the same cashflow that runs the feasibility. Test LVR, LCR, ICR and peak equity across scenarios, on every Australian residential project.
The job
The right capital stack for the right project.
A capital stack is sized off cashflow, not off the top of the analyst's head. Popurise builds the cashflow first, then sizes the senior facility, the equity quantum and the sponsor co-invest off it.
Equity quantum solve
Peak equity is the equity quantum. Popurise computes it from the cashflow, not from a rule of thumb.
ICR check
Test the interest coverage ratio at the facility rate. Flag the months where ICR is tight.
Sponsor co-invest
Split equity into sponsor and capital partner tranches. See the IRR and the cash-on-cash on each.
Refi scenario
Model a mid-project refinance on a different LVR or rate. Read the impact on equity IRR.
Cost increase impact
Move build $/m² up. Read the new peak debt and the new equity quantum. See if the facility holds.
When it matters
The four conversations the sizing has to support.
Senior debt term sheet
Lender wants LVR, peak debt, ICR and a defensible cashflow. Sizing answers all four.
Equity raise
Capital partner wants peak equity, drawdown schedule and a return profile, by tranche.
Pre-FC review
Internal credit asks for a headroom test under a downside. Sizing turns the test into a number.
Cost increase
Builder reprices the construction. Sizing tells you whether the facility still works.
Inputs and outputs
From cashflow to capital stack.
Inputs that drive it
- Project cashflow (monthly, from feasibility)
- Senior debt LVR cap, LCR cap, rate, fees
- Equity quantum and drawdown order
- Sponsor co-invest percentage
- Capital partner preferred return and promote
- Refinance trigger and post-refi terms
Outputs that matter
- Peak debt and peak equity, dated
- LVR, LCR and ICR profile across the project
- Equity drawdown schedule
- Equity IRR overall and by tranche
- Sponsor cash-on-cash and capital partner IRR
- Sizing headroom against the term sheet
How it works
From cashflow to a sized stack, in four steps.
- 01
Confirm the cashflow
Lock the monthly cashflow the feasibility produced. The sizing reads from this, not from a separate model.
- 02
Set the facility caps
Enter the LVR, LCR and rate the senior is offering. Popurise checks the cashflow against the caps.
- 03
Size the equity
Peak equity is the quantum. Split it between sponsor and capital partner. Set the preferred return and the promote.
- 04
Stress the stack
Run a downside scenario. Confirm the facility still holds. Flag where it does not.
Versus the alternative
A stack that reads the same way the lender does.
Spreadsheet sizing
Rules of thumb and a separate tab
- Equity quantum set by 60/40 rule, not by cashflow
- ICR computed in a separate sheet, often stale
- LVR check by hand, against an out-of-date TDC
- No structured way to test a downside
Popurise
Sizing in Popurise
- Equity quantum read from peak equity in the cashflow
- ICR, LCR and LVR profile updated with every input change
- Sponsor and capital partner tranches modelled explicitly
- Downside stress runs against the same cashflow
Size your next stack in Popurise.
No spreadsheets. No setup. Fourteen-day free trial, no credit card.