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Debt

Overview

The Debt module is composed of four interconnected components:

Debt represents the outstanding amount at the end of a given period. It is calculated as the opening balance plus any Debt Issuance, minus any Debt Repayment. This closing balance appears on the Balance Sheet under Liabilities.

Debt Issuance refers to borrowings undertaken during the period. These inflows increase the debt balance and are reflected in the Cash Flow Statement under Cash Flow from Financing Activities.

Debt Repayment consists of cash outflows used to reduce the outstanding debt. These reduce the debt balance and are also reported under Cash Flow from Financing Activities.

Interest Expense is the cost of borrowing. It appears on the Income Statement. If paid in cash, it does not affect the debt balance. If it is capitalized (e.g., PIK – Paid-in-Kind), it is added to the debt balance and treated as a non-cash item in the Cash Flow Statement.

Model Flow

[NTD: Add visual model flow chart]

Adding a module

To add a Debt component in a model, select one of the following nodes in the Blueprint window:

  • Schedule → Debt
  • Balance Sheet → Debt
  • Income Statement → Interest Expense
  • Cash Flow Statement → Debt Repayment
  • Cash Flow Statement → Debt Issuance

Editable Properties

Debt

Debt Type

Set the debt type to pre-configure certain parameters:

  • General (Default)
  • Revolver
  • Repayment: Cash Sweep
  • Issuance: Cash Surplus
  • Term Loan
  • Issuance: Amortization
  • Repayment: Disabled
  • Notes
  • Issuance: Hardcoded Input
  • Repayment: Disabled

Inclusion

See Inclusion for more details.

Name

See Display Name for more details.
The name flows through the Standalone model, Debt Schedule, Balance Sheet (Liabilities), and all applicable DCF and M&A models.

Interest Expense

Inclusion

See Inclusion for more details.
Flows to Income Statement, Cash Flow Statement (if PIK), DCF and M&A models.

Name

See Display Name for more details.

Forecast

Default: Interest Rate
Available Methods: - Interest Rate (default)

Drives Interest Expense = Interest Rate × Debt Balance - Hardcoded Input
- Nil
- Last Historical
- Growth Rate
- Ratio

Balance Type

Only applicable if using the Interest Rate method.

Options: - Opening Balance – Use when repayment frequency aligns with model periods (e.g., annual). - Average Balance (Default) – Use when repayments occur more frequently than model periods (e.g., quarterly).

Rate Floor

Set a minimum interest rate, even if calculated rate is lower. Default: False
Available only under Interest Rate method.

Cash / PIK

Determines if interest is paid in Cash, PIK, or both.
Default: Cash
PIK interest is added to the debt balance and treated as non-cash.

Non-Taxable

See Non-Taxable for more details.

Debt Repayment

Inclusion

See Inclusion for more details.
Flows to Cash Flow Statement (Financing), DCF, M&A, and Standalone models.

Name

See Display Name for more details.

Forecast

Default: Hardcoded Input
Available Methods: - Hardcoded Input
- Nil
- Last Historical
- Growth Rate
- Ratio - Amortization - Cash Sweep

Debt Issuance

Inclusion

See Inclusion for more details.
Flows to Cash Flow Statement (Financing), DCF, M&A, and Standalone models.

Name

See Display Name for more details.

Forecast

Default: Hardcoded Input
Available Methods: - Cash Shortfall

Use when forecasting facilities used to finance cash shortfalls - Hardcoded Input
- Nil
- Last Historical
- Growth Rate
- Ratio

Additional Materials

See Debt 101 page for more details.