Cash interest follows dated balances
Interest rate % p.a. is a cash rate on the outstanding loan balance. The calculation divides periods at relevant dates and uses the Model day-count basis. A midperiod draw accrues only for its remaining exposure; a repayment reduces later exposure. Automatic end-of-interval movements affect interest from the next interval. Inspector reconciles facility and loan interest with the linked Model debt component.
Annual amortization is an amount
Amortization / year is a fixed annual principal amount, not a percentage. It is prorated by the interval’s year fraction and capped at remaining principal. Scheduled repayments and maturity repayment also reduce debt. The debt schedule shows total Repayments and separately identifies the amortization included in them; do not subtract that amortization again when reconciling closing debt.
Use the effective maturity
When both facility and loan maturity exist, the earlier date controls. Outstanding principal settles at that maturity and the loan cannot take a draw on or after it. Facility availability can end before otherwise unused commitment is consumed. Review Refinancing when the maturity is intended to be replaced, rather than extending a date merely to conceal a funding shortfall. Historical movements are not editable forecast draws.
Reconcile debt and expense separately
Opening debt + Draws − Repayments = Closing debt. Cash interest is an expense and cash outflow, not a principal repayment. The same expense feeds earnings, tax and operating cash flow. Financing cash impact in this operator also includes interest and applicable refinancing fees/equity, so its scope differs from principal movements alone. For legacy Model interest-source ownership, use Interest expense & income.
Current debt-instrument scope
Loans use entered annual cash rates and dated principal movements. There is no Credit facility PIK toggle, floating-rate curve, margin ratchet or automatic covenant-triggered pricing. LBO tranches have their own cash/PIK behavior and do not make PIK a facility feature here. Opening allocations must fit both existing Model debt and facility commitment; an invalid movement is rejected rather than hidden by adjusting cash.
Documents the current implemented behavior. Numerical examples are synthetic, not market assumptions.