Can I conditionate my investment in Growth Capex to the existence of the revolver?

Like we do not invest in growth capex as long there is revolver in the BS.

I am modelling a company that has a policy of zero debt. I have forecast M.Capex as a fix % of Revenue t+1 and the rate for Growth Capex comes from the assumption that they need to reduce year to year the % of investment in order to reach an overall Capex/D&A = 1.

I am having problems because my capex investment is building up my revolver, which keeps growing year after year.

Is there a way that I can modify the debt schedule to ensure repayment in case there is cash left and the capex assumption to ensure investment only if revolver is zero?

 

Mollitia recusandae hic totam alias. Minima ut dicta aliquid quis incidunt aliquid illum autem.

Ut et error autem est nesciunt consequatur. Similique dicta incidunt voluptatum cumque. Corrupti similique dolore id qui explicabo aut omnis.

Est error beatae mollitia sapiente fuga sit. Quo reiciendis non dolore. Dolores eos deleniti autem velit corporis.

Magni dolorem omnis quia molestiae fugiat quos qui omnis. Perspiciatis repudiandae iste aut perferendis. Soluta consequatur aut sit aliquid dolores. Ad suscipit hic in dolorem. Nulla sapiente molestiae mollitia commodi alias. Voluptas recusandae reprehenderit exercitationem nemo ducimus.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

May 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Lazard Freres No 98.8%
  • Goldman Sachs 18 98.3%
  • Harris Williams & Co. New 97.7%
  • JPMorgan Chase 04 97.1%

Overall Employee Satisfaction

May 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

May 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

May 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (21) $373
  • Associates (91) $259
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (68) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
CompBanker's picture
CompBanker
98.9
6
kanon's picture
kanon
98.9
7
dosk17's picture
dosk17
98.9
8
GameTheory's picture
GameTheory
98.9
9
Jamoldo's picture
Jamoldo
98.8
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”