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Debt & Amortization Modeling

Most companies model their debt from memory of the loan, not the loan. The covenant that surprises management never surprised the documents.

The work

What the work actually is.

Debt schedules that match the loan documents, and covenant headroom watched before it is news.

The loan agreement specifies rates, reset dates, amortization mechanics, prepayment penalties, and covenants, each defined precisely, in writing, at closing. The company’s model, where one exists, specifies a monthly payment. Every unpleasant phone call from a lender lives in the space between those two documents.

The work closes the space. Schedules built from the agreements themselves: every facility, every reset, every covenant computed the way the document defines it, then wired into the operating rhythm, so headroom is a line in the monthly close rather than a discovery in a bad quarter. A covenant watched from a distance of two quarters is a conversation; watched from a distance of two weeks, it is an event.

The payoffs are practical. Refinance timing evaluated on arithmetic instead of instinct. Prepayment penalties weighed against stated rate scenarios. The hard conversation held with the lender early, from preparation. Lenders extend the most patience to the borrowers who saw it coming.

Deliverables

What you keep.

Debt schedule
Every facility modeled from its documents: rates, resets, amortization, prepayment mechanics.
Covenant monitor
Each covenant computed as the agreement defines it, with headroom tracked in the monthly rhythm.
Refinance & payoff scenarios
Hold, refinance, or retire: the timing question answered under stated rate assumptions.

Getting started

A documents-versus-model audit: every facility’s actual terms extracted from the agreements and compared against what the company believes it owes. Differences listed, in writing.

Get started

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