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A refi scenario models a refinancing event where new debt proceeds exceed the existing debt payoff, creating distributable cash.

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Key inputs

InputDescription
New loan amountTotal proceeds from the new loan
New interest rateRate on the new loan
New amortizationAmortization period in years
New termLoan term in years
Payoff amountExisting debt being retired

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Distributable cash

Distributable cash = New loan proceeds - Existing debt payoff - Closing costs This cash flows through the waterfall. In most structures, refi proceeds are treated as a return of capital first, then preferred return catch-up.

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Post-refi operations

After the refi, WaterfallIQ updates the debt schedule with the new loan terms and recalculates DSCR going forward.