{"id":23749,"date":"2021-07-12T07:17:52","date_gmt":"2021-07-12T12:17:52","guid":{"rendered":"https:\/\/breakingintowallstreet.com\/biws\/?post_type=biws_kb&#038;p=23749"},"modified":"2025-07-16T18:39:46","modified_gmt":"2025-07-16T23:39:46","slug":"debt-schedule","status":"publish","type":"biws_kb","link":"https:\/\/breakingintowallstreet.com\/kb\/leveraged-buyouts-and-lbo-models\/debt-schedule\/","title":{"rendered":"Video Tutorial: The Debt Schedule in 3-Statement Models, LBO Models, and Credit Models"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-flat ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">The Debt Schedule in 3-Statement Models, LBO Models, and Credit Models<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/breakingintowallstreet.com\/kb\/leveraged-buyouts-and-lbo-models\/debt-schedule\/#Types_of_Debt_Schedules_and_Their_Complexities\">Types of Debt Schedules and Their Complexities<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/breakingintowallstreet.com\/kb\/leveraged-buyouts-and-lbo-models\/debt-schedule\/#A_Simple_Debt_Schedule_in_a_3-Statement_Model\">A Simple Debt Schedule in a 3-Statement Model<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/breakingintowallstreet.com\/kb\/leveraged-buyouts-and-lbo-models\/debt-schedule\/#A_Debt_Schedule_in_an_LBO_Model_for_Twitter\">A Debt Schedule in an LBO Model for Twitter<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/breakingintowallstreet.com\/kb\/leveraged-buyouts-and-lbo-models\/debt-schedule\/#A_Debt_Schedule_in_a_CreditRefinancing_Model_for_Netflix\">A Debt Schedule in a Credit\/Refinancing Model for Netflix<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/breakingintowallstreet.com\/kb\/leveraged-buyouts-and-lbo-models\/debt-schedule\/#The_Debt_Schedule_Just_How_Important_Is_it\">The Debt Schedule: Just How Important Is it?<\/a><\/li><\/ul><\/nav><\/div>\n\n<blockquote><p><strong>Debt Schedule Definition: <\/strong>A Debt Schedule uses a company\u2019s cash flow projections to estimate how much Debt principal the company can repay and how its interest expense changes as a result; it may also project additional Debt and Equity issuances and stock repurchases.<\/p><\/blockquote>\n<p>A Debt Schedule could appear in various types of <a href=\"https:\/\/mergersandinquisitions.com\/financial-modeling\/\" target=\"_blank\" rel=\"noopener\">financial models<\/a>: <a href=\"https:\/\/mergersandinquisitions.com\/3-statement-model\/\" target=\"_blank\" rel=\"noopener\">3-statement models<\/a> that project a company\u2019s financial performance, <a href=\"https:\/\/breakingintowallstreet.com\/kb\/ma-and-merger-models\/\" target=\"_blank\" rel=\"noopener\">merger models<\/a>, <a href=\"https:\/\/breakingintowallstreet.com\/kb\/leveraged-buyouts-and-lbo-models\/\" target=\"_blank\" rel=\"noopener\">leveraged buyout (LBO) models<\/a>, and credit-focused models that compare financing alternatives for a company, such as 50% Debt \/ 50% Equity vs. 100% Debt.<\/p>\n<h3><strong>Excel Files, Resources, and Links:<\/strong><\/h3>\n<ul>\n<li><a href=\"https:\/\/youtube-breakingintowallstreet-com.s3.amazonaws.com\/101-02-Debt-Schedule-Refinancing-Simplified.xlsx\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Debt Schedule in a Refinancing Model for Netflix (Simplified) (XL)<\/a><\/li>\n<li><a href=\"https:\/\/youtube-breakingintowallstreet-com.s3.amazonaws.com\/101-02-Debt-Schedule-Slides.pdf\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Debt Schedule &#8211; Presentation Slides (PDF)<\/a><\/li>\n<li><a href=\"https:\/\/mergersandinquisitions.com\/3-statement-model\/\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">3-Statement Model for Otis (Include a simple Debt Schedule)<\/a><\/li>\n<li><a href=\"https:\/\/mergersandinquisitions.com\/twitter-buyout\/\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">LBO Model for Twitter (Includes a more complex Debt Schedule)<\/a><\/li>\n<\/ul>\n<h3><strong>Table of Contents:<\/strong><\/h3>\n<ul>\n<li><strong>0:00:<\/strong> Introduction<\/li>\n<li><strong>1:53:<\/strong> Summary of Debt Schedules by Model Type<\/li>\n<li><strong>5:37:<\/strong> Debt Schedules by Complexity and Features<\/li>\n<li><strong>7:22:<\/strong> Debt Schedules in 3-Statement Models<\/li>\n<li><strong>9:46:<\/strong> Debt Schedules in LBO Models<\/li>\n<li><strong>15:07:<\/strong> Debt Schedules in Credit or Refinancing Models<\/li>\n<li><strong>31:40:<\/strong> Recap and Summary<\/li>\n<\/ul>\n<p>Almost every Debt Schedule uses the following mechanics:<\/p>\n<p><strong>Minimum\/Targeted Cash:<\/strong> The company must maintain a certain amount of Cash to fund its operations and pay for day-to-day expenses.<\/p>\n<p><strong>Cash Exceeds the Minimum\/Targeted Cash:<\/strong> In this case, the company can repay Debt or repurchase Stock.<\/p>\n<p><strong>Cash Falls Below the Minimum\/Targeted Cash:<\/strong> In this case, the company must issue additional Debt (or Equity) to continue operating.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Types_of_Debt_Schedules_and_Their_Complexities\"><\/span><strong>Types of Debt Schedules and Their Complexities<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In most 3-statement models, you keep the Debt Schedule simple by <strong>combining the Debt issuances<\/strong> into a single line and using a weighted-average interest rate.<\/p>\n<p>Most companies aim to keep their Cash and Debt in similar ranges over time, and these models reflect that.<\/p>\n<p>In an LBO model, you normally need at least 2 \u201ctranches\u201d of Debt \u2013 Term Loans that can be repaid early and Senior Notes that can\u2019t \u2013 and possibly a Revolver for additional borrowing needs.<\/p>\n<p>LBO models typically assume that the company <strong>repays significant Debt<\/strong>, so you set up the assumptions to maximize that repayment.<\/p>\n<p>Finally, in a <strong>credit or refinancing model<\/strong>, a company has upcoming Debt maturities or needs capital to fund other projects, so you forecast its financials and consider different options.<\/p>\n<p>For example, should the company raise 100% Debt? 100% Equity? A mix of both? Which type(s) of Debt?<\/p>\n<p>You still need its minimum or targeted Cash, but you also need its targeted credit stats and ratios and different operational scenarios, such as Base, Downside, and Extreme Downside Cases.<\/p>\n<p>Here\u2019s a summary of Debt Schedules by features and complexity:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-25256 size-full\" title=\"Debt Schedule Summary\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075003\/01-Debt-Schedule-Summary.jpg\" alt=\"Debt Schedule Summary\" width=\"1265\" height=\"591\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075003\/01-Debt-Schedule-Summary.jpg 1265w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075003\/01-Debt-Schedule-Summary-300x140.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075003\/01-Debt-Schedule-Summary-1024x478.jpg 1024w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075003\/01-Debt-Schedule-Summary-768x359.jpg 768w\" sizes=\"(max-width: 1265px) 100vw, 1265px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_Simple_Debt_Schedule_in_a_3-Statement_Model\"><\/span><strong>A Simple Debt Schedule in a 3-Statement Model<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In a <strong>timed modeling test<\/strong> or a case study with a 3-statement model, you should keep the treatment of Debt and Equity <strong>very simple.<\/strong><\/p>\n<p>The normal goal here is to <strong>keep the company\u2019s Cash and Debt levels in similar ranges<\/strong>, either as percentages of revenue or in nominal dollars\/euros\/other currencies.<\/p>\n<p>For a good example, <a href=\"https:\/\/mergersandinquisitions.com\/3-statement-model\/\" target=\"_blank\" rel=\"noopener\">look at our 3-statement model for Otis (elevator manufacturer)<\/a>.<\/p>\n<p>To determine the Debt issuances\/repayments and stock repurchases, we do the following:<\/p>\n<p><strong>1) \u201cExcess Cash Flow\u201d<\/strong> = Beginning Cash + everything on the Cash Flow Statement <em>except for<\/em> the Debt and Equity line items \u2013 Minimum Cash.<\/p>\n<p><strong>2) Positive Excess Cash Flow:<\/strong> The company spends 85% on stock repurchases and 15% on Debt repayments, per guidance from management in the investor presentation.<\/p>\n<p><strong>3) Negative Excess Cash Flow (i.e., a Cash Flow Deficit):<\/strong> In this case, the company issues enough Debt to offset this deficit. It repays no Debt and repurchases no Stock.<\/p>\n<p>You can see the \u201cChange in Debt\u201d formula and output below:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-25257 size-full\" title=\"Change in Debt in a 3-Statement Model\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075003\/02-Change-in-Debt.jpg\" alt=\"Change in Debt in a 3-Statement Model\" width=\"966\" height=\"260\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075003\/02-Change-in-Debt.jpg 966w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075003\/02-Change-in-Debt-300x81.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075003\/02-Change-in-Debt-768x207.jpg 768w\" sizes=\"(max-width: 966px) 100vw, 966px\" \/><\/p>\n<p>The Interest Expense on the Income Statement is based on a simple interest rate (2.5% rising to 3.5% over time) applied to the company\u2019s Debt balance in the year.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_Debt_Schedule_in_an_LBO_Model_for_Twitter\"><\/span><strong>A Debt Schedule in an LBO Model for Twitter<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A Debt Schedule in a <a href=\"https:\/\/breakingintowallstreet.com\/kb\/leveraged-buyouts-and-lbo-models\/what-is-an-lbo-model\/\" target=\"_blank\" rel=\"noopener\">leveraged buyout<\/a> differs in several ways:<\/p>\n<p><strong>1) Purpose<\/strong> \u2013 The goal is not to maintain Cash and Debt in similar ranges but to <strong>repay as much Debt as possible<\/strong> with the company\u2019s cash flows.<\/p>\n<p><strong>2) Debt Tranches<\/strong> \u2013 Depending on the time and model complexity, you\u2019ll usually have to model at least 2 tranches of Debt, and sometimes up to 3, 4, or even more.<\/p>\n<p><strong>3) Mandatory Debt Principal Repayments<\/strong> \u2013 These repayments, common for Term Loans, must be factored into the company\u2019s \u201cCash Flow Available for Debt Repayment\u201d (CFADR) or \u201cCash Flow Surplus \/ Deficit\u201d (or whatever it is called).<\/p>\n<p><strong>4) Additional Features<\/strong> \u2013 Revolvers (for additional temporary borrowing) are common in LBOs, as are additional features such as interest-rate floors, <a href=\"https:\/\/breakingintowallstreet.com\/kb\/leveraged-buyouts-and-lbo-models\/pik-interest\/\" target=\"_blank\" rel=\"noopener\">Paid-in-Kind or PIK Interest<\/a>, <a href=\"https:\/\/breakingintowallstreet.com\/kb\/leveraged-buyouts-and-lbo-models\/cash-flow-sweep\/\">cash flow sweeps<\/a> for optional repayments, <a href=\"https:\/\/breakingintowallstreet.com\/kb\/debt-equity\/original-issue-discount-debt\/\" target=\"_blank\" rel=\"noopener\">original issue discount (OID)<\/a>, and commitment fees.<\/p>\n<p>Here\u2019s a summary of our Debt Schedule for Twitter:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-25258 size-full\" title=\"Twitter - Debt Schedule\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075002\/03-Twitter-Debt-Schedule.jpg\" alt=\"Twitter - Debt Schedule\" width=\"969\" height=\"639\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075002\/03-Twitter-Debt-Schedule.jpg 969w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075002\/03-Twitter-Debt-Schedule-300x198.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075002\/03-Twitter-Debt-Schedule-768x506.jpg 768w\" sizes=\"(max-width: 969px) 100vw, 969px\" \/><\/p>\n<p>The steps to set up a Debt Schedule in a leveraged buyout are as follows:<\/p>\n<p><strong>Step 1:<\/strong> Calculate the Mandatory Repayments on each tranche of Debt, also known as the \u201cAmortization\u201d of the Debt principal.<\/p>\n<p>For Twitter, these are simple percentages of the initial balances of Term Loans, Senior Secured Notes, and Margin Loans.<\/p>\n<p>The MIN function handles the case where the remaining balance is less than the fixed annual repayment:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-25259 size-full\" title=\"Twitter - Mandatory Debt Repayments\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075002\/04-Twitter-Mandatory-Debt-Repayments.jpg\" alt=\"Twitter - Mandatory Debt Repayments\" width=\"1017\" height=\"270\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075002\/04-Twitter-Mandatory-Debt-Repayments.jpg 1017w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075002\/04-Twitter-Mandatory-Debt-Repayments-300x80.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075002\/04-Twitter-Mandatory-Debt-Repayments-768x204.jpg 768w\" sizes=\"(max-width: 1017px) 100vw, 1017px\" \/><\/p>\n<p><strong>Step 2:<\/strong> In each period, calculate the Cash Flow Available for Debt Repayment (CFADR), also known as the Cash Flow Surplus \/ Shortfall or Excess \/ Deficit Cash Flow, among other names.<\/p>\n<p>This is similar to the calculation in the 3-statement model above: Beginning Cash + Free Cash Flow \u2013 Amortization \u2013 Minimum Cash:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-25260 size-full\" title=\"Twitter - Cash Flow Available for Debt Repayment\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075001\/05-Cash-Flow-Available-for-Debt-Repayment.jpg\" alt=\"Twitter - Cash Flow Available for Debt Repayment\" width=\"1006\" height=\"173\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075001\/05-Cash-Flow-Available-for-Debt-Repayment.jpg 1006w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075001\/05-Cash-Flow-Available-for-Debt-Repayment-300x52.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075001\/05-Cash-Flow-Available-for-Debt-Repayment-768x132.jpg 768w\" sizes=\"(max-width: 1006px) 100vw, 1006px\" \/><\/p>\n<p>We use <a href=\"https:\/\/breakingintowallstreet.com\/kb\/financial-statement-analysis\/how-to-calculate-free-cash-flow\/\" target=\"_blank\" rel=\"noopener\">Free Cash Flow (FCF)<\/a> rather than \u201ceverything on the CFS but the Debt\/Equity lines\u201d because in an LBO model, the <a href=\"https:\/\/breakingintowallstreet.com\/kb\/accounting\/cash-flow-statement\/\" target=\"_blank\" rel=\"noopener\">Cash Flow Statement<\/a> is typically simplified down to the core components of FCF (Cash Flow from Operations \u2013 Capital Expenditures).<\/p>\n<p>(Note that this Cash Flow Available for Debt Repayment metric might &#8220;sound&#8221; similar to the <a href=\"https:\/\/breakingintowallstreet.com\/kb\/project-finance\/cash-flow-available-for-debt-service-cfads\/\" target=\"_blank\" rel=\"noopener\">Cash Flow Available for Debt Service (CFADS)<\/a> in Project Finance, but they&#8217;re actually quite different &#8211; since CFADS does not deduct any Debt Service and does not reflect the Beginning or Minimum Cash numbers).<\/p>\n<p><strong>Step 3:<\/strong> If the company does not have enough cash flow to make its Mandatory Repayments while maintaining the Minimum Cash, it must draw on its Revolver.<\/p>\n<p>We handle this part with a simple MIN function in this model:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-25261 size-full\" title=\"Twitter - Revolver Draws\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075000\/06-Twitter-Revolver-Draws.jpg\" alt=\"Twitter - Revolver Draws\" width=\"1007\" height=\"299\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075000\/06-Twitter-Revolver-Draws.jpg 1007w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075000\/06-Twitter-Revolver-Draws-300x89.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075000\/06-Twitter-Revolver-Draws-768x228.jpg 768w\" sizes=\"(max-width: 1007px) 100vw, 1007px\" \/><\/p>\n<p><strong>Step 4:<\/strong> If the company has extra cash flow, i.e., it can easily make its Mandatory Repayments while maintaining its Minimum Cash, you may assume Optional Repayments, also known as the \u201cCash Flow Sweep,\u201d for certain tranches of Debt.<\/p>\n<p>For example, we assume a<strong> 50% cash flow sweep<\/strong> for the Term Loans here, which means that Twitter uses 50% of its Cash Flow Surplus to repay the Term Loan balance in each period:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-25262 size-full\" title=\"Twitter - Cash Flow Sweep\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075000\/07-Twitter-Cash-Flow-Sweep.jpg\" alt=\"Twitter - Cash Flow Sweep\" width=\"1022\" height=\"551\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075000\/07-Twitter-Cash-Flow-Sweep.jpg 1022w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075000\/07-Twitter-Cash-Flow-Sweep-300x162.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19075000\/07-Twitter-Cash-Flow-Sweep-768x414.jpg 768w\" sizes=\"(max-width: 1022px) 100vw, 1022px\" \/><\/p>\n<p>Once again, the MIN function ensures that it does not repay <em>too much<\/em> of the Term Loans, which would turn the balance negative.<\/p>\n<p><strong>Step 5:<\/strong> Once you have the Mandatory and Optional Repayments, you can project the Interest Expense on Debt and the Interest Income on Cash.<\/p>\n<p>We took the current interest rates and their forecasts from the deal filings and news sources:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-25263 size-full\" title=\"Debt Schedule - Interest Expense Calculations\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074959\/08-Debt-Schedule-Interest-Expense.jpg\" alt=\"Debt Schedule - Interest Expense Calculations\" width=\"999\" height=\"674\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074959\/08-Debt-Schedule-Interest-Expense.jpg 999w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074959\/08-Debt-Schedule-Interest-Expense-300x202.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074959\/08-Debt-Schedule-Interest-Expense-768x518.jpg 768w\" sizes=\"(max-width: 999px) 100vw, 999px\" \/><\/p>\n<p><strong>Step 6:<\/strong> Finally, you can link the Debt Schedule to the financial statements. The Interest Expense and Interest Income appear on the company\u2019s Income Statement, and the Debt Repayments and Additional Borrowings show up on its Cash Flow Statement:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-25264 size-full\" title=\"Debt Schedule - Links on the Statements\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074958\/09-Debt-Schedule-Links.jpg\" alt=\"Debt Schedule - Links on the Statements\" width=\"1209\" height=\"557\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074958\/09-Debt-Schedule-Links.jpg 1209w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074958\/09-Debt-Schedule-Links-300x138.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074958\/09-Debt-Schedule-Links-1024x472.jpg 1024w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074958\/09-Debt-Schedule-Links-768x354.jpg 768w\" sizes=\"(max-width: 1209px) 100vw, 1209px\" \/><\/p>\n<p>This Debt Schedule tells us how well the company can service its Debt, especially in different operational scenarios.<\/p>\n<p>For example, Twitter does quite well in the Base Case here, but it struggles in the Downside Case, as its credit stats and ratios change to dangerous levels:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-25265 size-full\" title=\"Twitter - Debt Schedule - Credit Stats and Ratios\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074958\/10-Twitter-Debt-Schedule-Credit-Stats-Ratios.jpg\" alt=\"Twitter - Debt Schedule - Credit Stats and Ratios\" width=\"950\" height=\"356\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074958\/10-Twitter-Debt-Schedule-Credit-Stats-Ratios.jpg 950w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074958\/10-Twitter-Debt-Schedule-Credit-Stats-Ratios-300x112.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074958\/10-Twitter-Debt-Schedule-Credit-Stats-Ratios-768x288.jpg 768w\" sizes=\"(max-width: 950px) 100vw, 950px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_Debt_Schedule_in_a_CreditRefinancing_Model_for_Netflix\"><\/span><strong>A Debt Schedule in a Credit\/Refinancing Model for Netflix<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This Debt Schedule is similar to the one in the LBO model, but <strong>the purpose<\/strong> is quite different.<\/p>\n<p>The goal is to tell the company: \u201cBased on your targeted\/minimum Cash and targeted credit stats and ratios, you should use X% Debt and X% Equity to pay for your upcoming maturities or other funding needs.\u201d<\/p>\n<p>You might even go a step further and recommend <em>specific types of Debt<\/em>, such as Term Loans vs. Senior or Subordinated Notes.<\/p>\n<p>The challenge in this Debt Schedule is creating <strong>justifiable assumptions<\/strong> based on the filings and outside research <em>without overly complicating it<\/em>.<\/p>\n<p>The set of steps demonstrated in our simplified Netflix refinancing model is as follows:<\/p>\n<p><strong>Step 1:<\/strong> Build the cash flow projections or full 3-statement model, with support for multiple scenarios.<\/p>\n<p>Multiple scenarios are important because credit analysis is all about the <strong>downside case<\/strong>. If things go poorly, can the company still service its Debt? What are the chances of default?<\/p>\n<p>For Netflix, we used a combination of past trends, historical data, and its planned strategy to create several scenarios and plot them in simplified \u201ccash flow projections\u201d:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-25266 size-full\" title=\"Netflix - Operating Scenarios\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074957\/11-Netflix-Operating-Scenarios.jpg\" alt=\"Netflix - Operating Scenarios\" width=\"1000\" height=\"599\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074957\/11-Netflix-Operating-Scenarios.jpg 1000w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074957\/11-Netflix-Operating-Scenarios-300x180.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074957\/11-Netflix-Operating-Scenarios-768x460.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-25267 size-full\" title=\"Netflix - Cash Flow Projections\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074957\/12-Netflix-Cash-Flow-Projections.jpg\" alt=\"Netflix - Cash Flow Projections\" width=\"999\" height=\"597\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074957\/12-Netflix-Cash-Flow-Projections.jpg 999w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074957\/12-Netflix-Cash-Flow-Projections-300x179.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074957\/12-Netflix-Cash-Flow-Projections-768x459.jpg 768w\" sizes=\"(max-width: 999px) 100vw, 999px\" \/><\/p>\n<p><strong>Step 2:<\/strong> Forecast the interest rates for each tranche of Debt.<\/p>\n<p>Netflix has mostly Senior Note issuances with fixed rates, so this part is easy.<\/p>\n<p>But when each issuance matures and needs to be replaced with a new one, the rate will almost certainly go up because rates were rising at the time of this case study.<\/p>\n<p>We used overall market expectations from different data sources to estimate these higher rates:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-25268 size-full\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074956\/13-Debt-Schedule-Interest-Rate-Forecasts.jpg\" alt=\"Debt Schedule - Interest Rate Forecasts\" width=\"1002\" height=\"304\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074956\/13-Debt-Schedule-Interest-Rate-Forecasts.jpg 1002w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074956\/13-Debt-Schedule-Interest-Rate-Forecasts-300x91.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074956\/13-Debt-Schedule-Interest-Rate-Forecasts-768x233.jpg 768w\" sizes=\"(max-width: 1002px) 100vw, 1002px\" \/><\/p>\n<p><strong>NOTE:<\/strong> One oversight\/problem here is that we should track the rates for the New Senior Notes separately <em>for each separate issuance<\/em>, as the company could potentially issue 5 new sets of Senior Notes in this model.<\/p>\n<p>So, the rates might be 5.0% for the Year Issuance, 6.5% for the Year 2 Issuance, and so on, and they would stay the same each year\u00a0<em>for that issuance<\/em>.<\/p>\n<p>In practice, this is a small problem that we can ignore in a simplified model like this one because no matter what happens, the weighted-average interest rate will increase over time, and relatively little new Debt gets issued.<\/p>\n<p><strong>Step 3:<\/strong> Project the mandatory repayments and maturities to estimate each year&#8217;s cash outflows.<\/p>\n<p>Netflix\u2019s Senior Notes do not have fixed principal repayments, but they do <strong>mature<\/strong> in future periods. We plot the balances via the lines below:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-25269 size-full\" title=\"Debt Schedule - Senior Note Maturities\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074955\/14-Debt-Schedule-Maturities.jpg\" alt=\"Debt Schedule - Senior Note Maturities\" width=\"988\" height=\"244\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074955\/14-Debt-Schedule-Maturities.jpg 988w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074955\/14-Debt-Schedule-Maturities-300x74.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074955\/14-Debt-Schedule-Maturities-768x190.jpg 768w\" sizes=\"(max-width: 988px) 100vw, 988px\" \/><\/p>\n<p><strong>Step 4:<\/strong> Calculate the CFADR or \u201cCash Flow Surplus \/ (Deficit)\u201d the usual way, i.e., Beginning Cash + Free Cash Flow \u2013 Debt Maturities\/Repayments \u2013 Minimum Cash.<\/p>\n<p>This part is almost identical to the same schedule in the 3-statement and LBO models.<\/p>\n<p>The main difference is that there is no fixed annual amortization, only the maturities of the Senior Notes:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-25270 size-full\" title=\"Netflix - Cash Flow Available for Debt Repayment\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074955\/15-Netflix-Cash-Flow-Available-for-Debt-Repayment.jpg\" alt=\"Netflix - Cash Flow Available for Debt Repayment\" width=\"1056\" height=\"423\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074955\/15-Netflix-Cash-Flow-Available-for-Debt-Repayment.jpg 1056w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074955\/15-Netflix-Cash-Flow-Available-for-Debt-Repayment-300x120.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074955\/15-Netflix-Cash-Flow-Available-for-Debt-Repayment-1024x410.jpg 1024w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074955\/15-Netflix-Cash-Flow-Available-for-Debt-Repayment-768x308.jpg 768w\" sizes=\"(max-width: 1056px) 100vw, 1056px\" \/><\/p>\n<p>We used \u201cFree Cash Flow\u201d in the formula above, but, as with the 3-statement model, this part is closer to \u201cEverything on the CFS except for the Debt and Equity line items.\u201d<\/p>\n<p><strong>Step 5:<\/strong> Draw on or repay the Revolver, factoring in constraints like the maximum size and the commitment fees.<\/p>\n<p>We use a formula like the one above for Twitter, but this Revolver has a maximum draw of $500 million.<\/p>\n<p>So, we compare the ($500 million \u2013 Beginning Revolver) to the absolute value of the Cash Flow Surplus or Deficit to determine how much the company can draw:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-25271 size-full\" title=\"Debt Schedule - Revolver Treatment\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074954\/16-Debt-Schedule-Revolver.jpg\" alt=\"Debt Schedule - Revolver Treatment\" width=\"1051\" height=\"402\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074954\/16-Debt-Schedule-Revolver.jpg 1051w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074954\/16-Debt-Schedule-Revolver-300x115.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074954\/16-Debt-Schedule-Revolver-1024x392.jpg 1024w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074954\/16-Debt-Schedule-Revolver-768x294.jpg 768w\" sizes=\"(max-width: 1051px) 100vw, 1051px\" \/><\/p>\n<p><strong>Step 6:<\/strong> If the company has a Cash Flow Deficit, issue Debt or Equity; if it has a Cash Flow Surplus, repay Debt or repurchase Stock.<\/p>\n<p>These formulas are similar to the ones in the simplified 3-statement model:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-25272 size-full\" title=\"Debt Schedule - Additional Issuances and Repayments\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074954\/17-Debt-Schedule-Issuances-Repayments.jpg\" alt=\"Debt Schedule - Additional Issuances and Repayments\" width=\"1049\" height=\"347\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074954\/17-Debt-Schedule-Issuances-Repayments.jpg 1049w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074954\/17-Debt-Schedule-Issuances-Repayments-300x99.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074954\/17-Debt-Schedule-Issuances-Repayments-1024x339.jpg 1024w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074954\/17-Debt-Schedule-Issuances-Repayments-768x254.jpg 768w\" sizes=\"(max-width: 1049px) 100vw, 1049px\" \/><\/p>\n<p><strong>Step 7:<\/strong> Calculate the Interest Expense and Interest Income and link everything on the financial statements or cash-flow projections.<\/p>\n<p>The Interest numbers are based on SUMPRODUCT formulas with the Debt balances and the rates:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-25273 size-full\" title=\"Interest Expense Calculation with SUMPRODUCT\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074953\/18-Interest-Expense-SUMPRODUCT.jpg\" alt=\"Interest Expense Calculation with SUMPRODUCT\" width=\"1047\" height=\"654\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074953\/18-Interest-Expense-SUMPRODUCT.jpg 1047w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074953\/18-Interest-Expense-SUMPRODUCT-300x187.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074953\/18-Interest-Expense-SUMPRODUCT-1024x640.jpg 1024w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074953\/18-Interest-Expense-SUMPRODUCT-768x480.jpg 768w\" sizes=\"(max-width: 1047px) 100vw, 1047px\" \/><\/p>\n<p>And the links are straightforward since we do not have multiple financial statements:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-25274 size-full\" title=\"Debt Schedule - Links in the Cash Flow Projections\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074953\/19-Debt-Schedule-Links.jpg\" alt=\"Debt Schedule - Links in the Cash Flow Projections\" width=\"1001\" height=\"600\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074953\/19-Debt-Schedule-Links.jpg 1001w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074953\/19-Debt-Schedule-Links-300x180.jpg 300w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074953\/19-Debt-Schedule-Links-768x460.jpg 768w\" sizes=\"(max-width: 1001px) 100vw, 1001px\" \/><\/p>\n<p><strong>Step 8:<\/strong> Evaluate the credit stats and ratios in different scenarios until you find a mix of Debt and Equity that works.<\/p>\n<p>The main constraints are that Netflix wants to <strong>stay at or below 5x Debt \/ EBITDA and at or above 3x EBITDA \/ Interest<\/strong>.<\/p>\n<p>In the Base and Downside Cases, 100% Debt satisfies these constraints.<\/p>\n<p>But in the Extreme Downside Case, the results are much worse:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-25275 size-full\" title=\"Maximum Leverage Ratio Violations for Netflix\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074952\/20-Leverage-Ratio-Violation.jpg\" alt=\"Maximum Leverage Ratio Violations for Netflix\" width=\"739\" height=\"442\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074952\/20-Leverage-Ratio-Violation.jpg 739w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074952\/20-Leverage-Ratio-Violation-300x179.jpg 300w\" sizes=\"(max-width: 739px) 100vw, 739px\" \/><\/p>\n<p>If the company uses 50% Debt and 50% Equity instead, it complies with the maximum Debt \/ EBITDA in this scenario:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-25276 size-full\" title=\"Maximum Leverage Ratio Compliance with 50% Debt and 50% Equity\" src=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074952\/21-Leverage-Ratio-Compliance.jpg\" alt=\"Maximum Leverage Ratio Compliance with 50% Debt and 50% Equity\" width=\"740\" height=\"444\" srcset=\"https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074952\/21-Leverage-Ratio-Compliance.jpg 740w, https:\/\/biwsuploads-assest.s3.amazonaws.com\/biws\/wp-content\/uploads\/2021\/07\/19074952\/21-Leverage-Ratio-Compliance-300x180.jpg 300w\" sizes=\"(max-width: 740px) 100vw, 740px\" \/><\/p>\n<h3><strong>Our Recommendations to Netflix<\/strong><\/h3>\n<p>Based on this analysis, we would tell the company to shift to a higher percentage of Equity funding if its business performance declines by more than expected.<\/p>\n<p>Also, we might tell the company to issue additional Debt or Equity <strong>now<\/strong> rather than waiting for the maturities so it can build up a \u201ccash buffer\u201d and avoid paying even higher rates in the future.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Debt_Schedule_Just_How_Important_Is_it\"><\/span><strong>The Debt Schedule: Just How Important Is it?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>You should now understand how to build a Debt Schedule into a 3-statement model, LBO model, and credit\/refinancing model.<\/p>\n<p>But how important is it in <a href=\"https:\/\/www.mergersandinquisitions.com\/investment-banking-interview-questions-and-answers\/\" target=\"_blank\" rel=\"noopener\">investment banking interviews<\/a> or <a href=\"https:\/\/www.mergersandinquisitions.com\/private-equity-interviews\/\" target=\"_blank\" rel=\"noopener\">private equity interviews<\/a>?<\/p>\n<p>You\u2019re <strong>unlikely<\/strong> to get detailed technical questions about it because the Debt Schedule is more of a \u201cmechanical topic\u201d than a conceptual one.<\/p>\n<p>If interviewers want to check your skills, they\u2019ll give you an LBO modeling test with a Debt Schedule rather than asking you verbal questions about it.<\/p>\n<p><a href=\"https:\/\/mergersandinquisitions.com\/lbo-modeling-test\/\" target=\"_blank\" rel=\"noopener\">Timed LBO modeling tests<\/a> are extremely common in private equity interviews but far less common for internships and entry-level roles in investment banking.<\/p>\n<p>Modeling tests in investment banking are usually given to more experienced candidates, such as <a href=\"https:\/\/www.mergersandinquisitions.com\/lateral-hiring\/\" target=\"_blank\" rel=\"noopener\">those interviewing for lateral roles<\/a>.<\/p>\n<p>So, if you are interviewing for internships or entry-level roles, it\u2019s good to be familiar with the setup of a Debt Schedule, but you don\u2019t need to know all the formulas.<\/p>\n<p><em><strong>This tutorial is a small taste of the knowledge you&#8217;ll gain in our paid courses. <\/strong><\/em><strong>Breaking Into Wall Street<\/strong><em><strong> uses real-life modeling tests and interview case studies to prepare you for investment banking and private equity interviews \u2013 and a leg up once you win your offer and start working. Find out more about our advanced training by via the button below:<\/strong><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this tutorial, you\u2019ll learn how to create a Debt Schedule in 3-statement models, leveraged buyout models, and credit\/refinancing models. You\u2019ll also get an example of a credit model based on Netflix.<\/p>\n","protected":false},"featured_media":0,"template":"","class_list":["post-23749","biws_kb","type-biws_kb","status-publish","hentry","kb_category-leveraged-buyouts-and-lbo-models"],"acf":[],"_links":{"self":[{"href":"https:\/\/breakingintowallstreet.com\/wp-json\/wp\/v2\/biws_kb\/23749","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/breakingintowallstreet.com\/wp-json\/wp\/v2\/biws_kb"}],"about":[{"href":"https:\/\/breakingintowallstreet.com\/wp-json\/wp\/v2\/types\/biws_kb"}],"wp:attachment":[{"href":"https:\/\/breakingintowallstreet.com\/wp-json\/wp\/v2\/media?parent=23749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}