Module VI· Debt Schedule MechanicsAdvanced
Question

How do you model a refinancing mid-forecast?

Answer

At the refinancing date, repay existing debt, raise new debt, pay refinancing fees, and update rates, maturities, and amortization. Recognize any prepayment penalties or write-off of unamortized fees if modeled. The cash flow statement shows debt repayment, new issuance, and fees. Interest expense changes from the refinancing date onward.