Unit Economics & Scenarios

Per-$100 walkthrough

Step 1
Lender lends $100
80 UST STRIPS (→ 100 at yr 5) · 10 tax prefund + fees · 10 capital to Project
Step 2
Project capital
existing 100 + new 10 = working base 110
Step 3
Warrant — 20% fully diluted
20% of 110 = 22 · denominator 100 + 22 = 122 · 22 / 122 = 18.0328%
Step 4
Unit split (§1273(c)(2))
warrant value 18.033 · note issue price 81.967 · OID accretes back to 100

Three scenarios per $100

Enterprise value compounds off the 110 working base for five years.

Project CAGR

50%

110 capital → 7.6× → 835.0

Enterprise value yr 5: 835.0
Note principal outstanding: 100.0
LTV: 11.97%
Lender equity — 20% × (EV − 100): 147.1
+ Principal repaid at maturity: 100.0

Total per $100247.1

MOIC2.47x

IRR19.83%

Principal claimable any time · par at maturity.

Project CAGR

100%

110 capital → 32.0× → 3,520.0

Enterprise value yr 5: 3,520.0
Note principal outstanding: 100.0
LTV: 2.84%
Lender equity — 20% × (EV − 100): 684.0
+ Principal repaid at maturity: 100.0

Total per $100784.0

MOIC7.84x

IRR50.96%

Principal claimable any time · par at maturity.

Project CAGR

150%

110 capital → 97.7× → 10,742.0

Enterprise value yr 5: 10,742.0
Note principal outstanding: 100.0
LTV: 0.93%
Lender equity — 20% × (EV − 100): 2,128.4
+ Principal repaid at maturity: 100.0

Total per $1002,228.4

MOIC22.28x

IRR86.04%

Principal claimable any time · par at maturity.

Illustrative example only; all figures are hypothetical. Not an offer, a solicitation, or tax, legal, insurance, or investment advice. Cash-neutrality assumes a 21% federal corporate rate; state tax, other rates, and AMT/BEAT/CAMT change the required coupon.

Interactive calculator

Move the CAGR to see the Lender's total per $100. Below refinance capacity the panel switches to the floor state — MOIC never prints below 1.00x.

Project CAGR (5 years)

%

−20%+160%

Capital base: 110
Note: 100
Warrant: 20%

Total to Lender per $100 lent across the CAGR range; the marker is the current setting.

Results per $100 lent

Enterprise value yr 5

3,520.0

LTV

2.841%

Lender equity (20%)

684.0

Total to Lender

784.0

MOIC

7.84x

IRR

50.96%

Per $100 lent. Illustrative only — see the sizing-specific scenario table for modeled outcomes.

Scenario table — $5MM net to Project

Modeled outcomes at the selected sizing. FAIL is the floor case, labelled FAIL.

Modeled scenario outcomes at $5MM net to Project sizing, from FAIL through HIGH.
Measure	FAIL	LOW	BASE	HIGH
Project CAGR	-9.7%	38.8%	82.1%	125.3%
Enterprise value yr 5	$30.00mm	$258.00mm	$1.00bn	$2.90bn
Refinance of the bullet	Not available	Refinanced or repaid in full	Refinanced or repaid in full	Refinanced or repaid in full
Equity value yr 5	$0	$229.50mm	$971.50mm	$2.87bn
Lender proceeds	$43.60mm	$89.50mm	$237.90mm	$618.00mm
Principal source	Treasury claim (auto-filed)	Project repayment	Project repayment	Project repayment
20% warrant	$0	$45.90mm	$194.30mm	$574.40mm
MOIC	1.00x after-tax (1.01x gross)	2.08x	5.52x	14.34x
IRR	0.247%	15.796%	40.807%	70.412%
LTV	143.7%	16.7%	4.3%	1.5%
Cell options	Forfeited	Vest	Vest	Vest

Modeled scenario outcomes at $5MM net to Project sizing, from FAIL through HIGH.

Illustrative example only; all figures are hypothetical. Not an offer, a solicitation, or tax, legal, insurance, or investment advice. Cash-neutrality assumes a 21% federal corporate rate; state tax, other rates, and AMT/BEAT/CAMT change the required coupon.

Lender interest schedule

Constant-yield accrual at 1.2085% with a stated coupon of 0.247% ($106,329/yr).

Lender interest schedule at $5MM net to Project sizing: adjusted issue price, stated interest, OID accrual, tax at 21%, and net cash.
Yr	Adjusted issue price	QSI cash	OID accrual	Total interest	Tax @ 21%	Net cash
1	$41,107,271	$106,329	$390,448	$496,777	$104,323	$2,006
2	$41,497,719	$106,329	$395,167	$501,496	$105,314	$1,015
3	$41,892,886	$106,329	$399,942	$506,271	$106,317	$12
4	$42,292,828	$106,329	$404,776	$511,105	$107,332	-$1,003
5	$42,697,604	$106,329	$409,667	$515,996	$108,359	-$2,030
Total	$43,107,271	$531,645	$2,000,000	$2,531,645	$531,645	$0

Lender interest schedule at $5MM net to Project sizing: adjusted issue price, stated interest, OID accrual, tax at 21%, and net cash.

Illustrative example only; all figures are hypothetical. Not an offer, a solicitation, or tax, legal, insurance, or investment advice. Cash-neutrality assumes a 21% federal corporate rate; state tax, other rates, and AMT/BEAT/CAMT change the required coupon.

Why this closes exactly

Each year's adjusted issue price plus that year's OID equals the next year's — the chain terminates exactly at face. The tax column sums exactly to the coupon reserve, and net cash to the Lender sums to zero. That is what “cash-neutral” means.

How it quotes

The paper is quoted against a maturity-matched Treasury comparison.

Option 1

UST 4.125% 7/31/31

Size · bid–ask: 98.773 x 98.781
Mark yield: 4.401% x 4.401%
Mid: 98.764 (4.4025%)

Option 2

PROJECT 0.247% 7/31/31

Size · ask: $50mm x $50mm · 551.99
Mark yield · mid: 4.176% x −40.807%
FAIL-case price: 101.23 gross (≈100.00 after-tax)

De minimis threshold $538,841 · warrant allocation $2.00mm · note issue price $41,107,271.

Illustrative example only; all figures are hypothetical. Not an offer, a solicitation, or tax, legal, insurance, or investment advice. Cash-neutrality assumes a 21% federal corporate rate; state tax, other rates, and AMT/BEAT/CAMT change the required coupon.