Dividends are conditional
The workbook uses opening net debt divided by the current year’s forecast EBITDA, a 2.75× ceiling in the 2027 base and 2.50× in the 2028 case. Both retain a $35m cash floor and a 50% FCFE payout ceiling. These are NHG model assumptions. Actual distributions depend on the financing terms and board approval.
“Debt first” sweeps spare cash into the revolving facility before paying distributions. “Dividends first” reserves the proposed payout before the sweep, while retaining the gate, cash floor and payout ceiling. A selected restart year is the earliest permitted year, not a guarantee.
