Module VI· Cash Sweep ModelingIntermediate
Question
How do you model the cash-sweep waterfall in Excel?
Answer
Calculate available cash after minimum cash and mandatory amortization. Apply it to debt tranches in contractual order using MIN formulas: repayment equals the lesser of available cash and outstanding balance. Reduce available cash after each tranche repayment. Link repayments to ending debt and financing cash flow. Add checks so repayments never exceed debt outstanding.