Cushion


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Cushion

In the context of project financing, the extra amount of net cash flow remaining after expected debt service.

Cushion

1. Period of time during which a bond cannot be called. Interest payments are guaranteed during the cushion, but not after, as the bond may be prematurely redeemed at any point after the call date.

2. A reserve account, or the function a reserve account serves, usually to pay off bad debt.

3. An advantageous debt-to-equity ratio, usually less than 40%.

cushion

References in classic literature ?
She felt as if she had been on a long journey, and at any rate she had had something to amuse her all the time, and she had played with the ivory elephants and had seen the gray mouse and its babies in their nest in the velvet cushion.
The lady with the black hood followed through all their wanderings the looks of Porthos, and perceived that they rested upon the lady with the velvet cushion, the little Negro, and the maid-servant.
Truly there was need that the old chair should be varnished and decorated with a crimson cushion, in order to make it suitable for such a magnificent-looking personage.
Seeing that he had chosen history she fetched her workbasket, drew up an arm-chair to the green-shaded student lamp, and uncovered a cushion she was embroidering for his sofa.
Beside him is a spare cushion with which he is always provided in order that he may have something to throw at the venerable partner of his respected age whenever she makes an allusion to money--a subject on which he is particularly sensitive.
Bert caught up a trailer-cushion and began to beat; there was another cushion and a table-cloth, and these also were seized.
She lay on the sofa with her face to the wall, fingering the buttons of the leather cushion and seeing nothing but that cushion, and her confused thoughts were centered on one subject- the irrevocability of death and her own spiritual baseness, which she had not suspected, but which had shown itself during her father's illness.
Please put me in my chair," she said to him, holding out her rug and cushion.
The second suggested a public procession, headed by the Wampog himself, bearing the Holy Poker on a cushion of cloth-of-brass.
Diving into one of the trunks that stood in a corner, he brought up, after a brisk rummage, a silken cushion, prettily embroidered, and a quaint cup of dark carved wood.
he answered himself, and opening his eyes, he saw with wonder an embroidered cushion beside him, worked by Varya, his brother's wife.
I must put something under the cushion for your head.