Selected accordion rights are economically option-like.
The teaching tool applies selected free-and-clear, ratio, ranking and MFN assumptions. It does not parse the agreement, determine debt or lien capacity, or produce a market price.
Case presets
Capacity mechanics
Priority overlay
Residual capacity is shown as lien-junior / unsecured.
Valuation bridge
MFN protection
Selected-route capacity estimate
Net option-cost teaching estimate
Under the chosen assumptions, the selected accordion routes produce a €2,706m capacity estimate and a 46 bps net option-cost teaching estimate after MFN attribution. These are not legal conclusions or market prices.
Priority splitassumed ranking of the selected-route estimate
Capacity bridgeselected-route estimate to probability-weighted amount
The selected-route amount is a teaching estimate under chosen mechanics. Actual availability and ranking require the full agreement, liens package and intercreditor analysis.
Bps bridgeborrower value less MFN protection
Left of center is the teaching estimate of borrower option cost; right of center is modeled lender protection. Tenor PV01 uses the selected tenor with 100% survival. Changing the denominator does not upgrade the payoff evidence.
Illustrative teaching model — full methodology here. Free-and-clear and ratio mechanics produce a selected-route capacity estimate under the inputs chosen. Future deleveraging is a separate sensitivity, not present capacity. The ranking split is assumed, not parsed. Actual incurrence, lien and intercreditor capacity require the full documents. Every euro and bps output is a teaching estimate, not legal advice, a market price, a trading mark or a recommendation.
Go deeper. Request controlled access to the complete Covenants Bible or read the public nine-part LevFin Book condensed edition.
The full framework — why a builder basket is path-dependent, incremental debt is a leverage-gated call, MFN is lender protection, and a make-whole is an American call with a stepping strike — is Part VII of the LevFin Book. See also the tool methodology page for the formula, variables and worked example.