Calculator
PGE exit: maturity, Médiation du crédit or refinancing
The calculator projects the cash of a company that still carries a PGE, the French state-guaranteed loan, along three routes: repayment at maturity, extension through the Médiation du crédit and refinancing with new debt. It gives the debt service, the cash shortfall and the net leverage of each.
Repayment at maturity
€7.78m
cash shortfall
Restructuring through the Médiation du crédit
€0.00m
cash shortfall
Refinancing with new debt
€0.00m
cash shortfall
Net leverage today: 2.64x. Cash flow available before debt service: €15.00m a year.
| Indicator | Repayment at maturity | Restructuring through the Médiation du crédit | Refinancing with new debt |
|---|---|---|---|
| Final repayment | Year 2 | Year 4 | Year 6 |
| Total debt service, year 1 | €22.16m | €16.16m | €15.24m |
| Highest total debt service | €22.16m | €16.16m | €15.24m |
| Cash shortfall | €7.78m | €0.00m | €0.00m |
| Interest on the route’s debt | €0.54m | €0.90m | €5.04m |
| Upfront fees | €0.00m | €0.00m | €0.48m |
| Net leverage at the end of year 1 | 2.05x | 2.05x | 2.12x |
| Year | Repayment at maturity | Restructuring through the Médiation du crédit | Refinancing with new debt |
|---|---|---|---|
| Year 1 | €-1.16m | €4.84m | €5.28m |
| Year 2 | €-7.78m | €4.13m | €5.64m |
| Year 3 | €-1.86m | €3.87m | €6.60m |
| Year 4 | €4.42m | €4.06m | €8.16m |
| Year 5 | €11.06m | €10.70m | €10.32m |
| Year 6 | €26.06m | €25.70m | €21.08m |
In the general case, the scheme is open to very small businesses and SMEs whose PGEs totalled at most €50,000 when granted. Above that amount, the departmental crisis exit adviser can refer the company to the Médiation du crédit when its documented situation justifies it. The restructuring covers the term and the repayment profile of the PGE. It leads the bank to classify the loan as non-performing, and the company may find it harder to obtain new credit for at least one year. The industry agreement that governs the scheme runs until 31 December 2026.
The initial values are sample inputs to replace with the terms of your loans and your business plan. This calculation gives an order of magnitude and commits no lender.
Method
The calculation formulas
Each debt amortises on a straight-line basis and its interest accrues on the principal outstanding at the start of the year. The Treasury FAQ caps the total term of a PGE at 6 years. Through the Médiation du crédit, the French credit mediation service, the extension reaches 2 years in the general case and 4 years by exception, with the State guarantee maintained. In the general case the scheme is open to very small businesses and SMEs whose PGEs totalled at most €50,000; above that amount, the departmental crisis exit adviser can refer a company to the Médiation when its documented situation justifies it.
Cash flow available
Cash flow available = EBITDA − tax paid − capital expenditure
Cash for the year
Cash = cash of the previous year + cash flow available − service of the other debt − service of the route’s debt
Net leverage
Net leverage = (PGE or new debt outstanding + other debt − cash) ÷ EBITDA
Example
Worked example
A company still owes €24.0m of PGE at 1.50%, repayable over 2 years, and €40.0m of other debt. It generates cash flow available of €15.0m a year and holds €6.0m of cash. Repaying the PGE at maturity brings debt service to €22.16m in year 1 and creates a cash shortfall of €7.78m. An extension of 2 years through the Médiation du crédit brings debt service down to €16.16m and keeps cash positive every year. New debt over 6 years at 6.00% brings debt service down to €15.24m, keeps cash positive every year and costs €5.52m in interest and fees. The figures of this example are sample inputs.
Benchmarks
The PGE rules
| Rule | Limit |
|---|---|
| Total term of the PGE when granted | 6 years |
| Extension through the Médiation du crédit, general case | 2 years, or 8 years in total |
| Extension through the Médiation du crédit, by exception | 4 years, or 10 years in total |
| Additional deferral, counted within the extension | 6 months |
| Total PGE amount when granted, general case of the scheme | €50,000 |
| End of the industry agreement | 31 December 2026 |
The State guarantee is maintained on the new repayment schedule with no additional premium. The restructuring can include neither a haircut nor a conversion of the PGE.
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