Enhanced Debt/Loan Refinancing Analysis Excel Tool

Description
MODEL OVERVIEW


Debt refinancing involves replacing one or more existing loan facilities with new financing, often to reduce borrowing costs, improve repayment terms, extend maturities, simplify debt structures or better align repayments with expected cash flows.


This user-friendly Excel model helps assess the financial impact of refinancing up to 10 existing loan facilities with up to 10 new facilities. It enables users to compare interest costs, principal repayments, outstanding balances, refinancing fees and overall cash flow effects before and after refinancing, helping support more informed debt restructuring and financing decisions.


METHODOLOGY


The financial model compares the remaining cash flows to maturity of existing loan facilities to net cash flows following the refinancing of these existing loan facilities with new loan facilities. The cash flows are calculated on a monthly basis for up to 20 years. The template allows calculations for up to 10 existing loan facilities and 10 new loan facilities. Each loan facility is specified and calculated separately and contains a full reconciliation from Opening to Closing Balance for each month.


KEY OUTPUTS


The model computes a number of outputs including:
- Net cash flow comparison of existing facilities to maturity vs existing/new facilities following refinancing;
- Loan balances for each month/year by facility, lender, loan type and base rate type;
- Total interest expense comparison of existing facilities to maturity vs existing/new facilities following refinancing;
- Full Control account for each loan facility (Opening Balance to Closing Balance Reconciliation);
- Exposure charts showing splits by lender, loan type and base rate for a particular projection year;
- Charts showing developments of cumulative cash flows, interest expense and loan balances on total basis.


KEY INPUTS


Setup Inputs:
- Business or individual name
- Currency
- First projection year and month
- List of base rates (up to 5 – but can be extended)
- List of lenders (up to 5 – but can be extended)
- List of loan types (up to 5 – but can be extended)
- Base rate forward interest rates
- Specific repayment amounts for existing and new loan facilities


Facility Inputs:
- Facility Name;
- Lender (from list of lenders specified above);
- Facility type (from list of loan types specified above);
- Balance at start of projection period (for existing facilities only);
- Start Date (for new facilities only);
- Maturity date;
- Base rate (from list of base rates);
- Margin rate;
- Interest-only or amortising loan (drop down);
- Payment frequency (monthly, quarterly, semi-annually or annually)
- Transaction costs (for new facilities only);
- Existing facility the new facility is replacing.


STRUCTURE


The template contains, 7 tabs split into input ('i_'), calculation ('c_'), output ('o_’) and system tabs. The only tab to be populated by the user are the input tabs ('i_Setup' and ‘i_Assumptions’). The calculation tab uses the user-defined inputs to calculate and produce the template outputs presented in 'o_Results'.


OTHER KEY FEATURES


- The model follows best practice financial modelling guidelines and includes instructions, checks and input validations;
- The model can calculate projected cash flows and balances for up to 10 existing and 10 new loan facilities;
- The model can calculate projected cash flows and balances on a monthly basis for a maximum period of 20 years from projection start date;
- The model is not password protected and can be modified as required following download;
- The model can calculate projected cash flows/balances for an interest-only debt / loan (all principal is paid on maturity date) or an amortising debt / loan (principal is paid as part of the periodic instalments across the life of the loan);
- Business/individual Name, currency, projection start, facility names, lender names, base rates and loan types are fully customisable;
- Each loan facility is specified and calculated separately and contains a full reconciliation from opening to closing balance for each month;
- The model includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors;
- The model includes checks and input validations to help ensure input fields are populated accurately.


SUPPORT / MODIFICATIONS


We are keen to ensure our customers are satisfied and find the models useful for their financial projection needs. Our models are developed with the user in mind and include instructions, line-item explanations, checks and input validations to ensure they are as user-friendly and easy to use as possible without requiring extensive knowledge of Microsoft Excel, finance or accounting. If any questions do arise, we are more than happy to assist. We are also happy to support with any be-spoke modifications you may require to the models to better suit your business needs. To get in touch, please send us a message through the website or contact us on: [email protected]


We are also always keen to receive feedback so please do let us know what you think of our models by sending us a message or submitting a review.


ABOUT PROJECTIFY


We are financial modelling professionals with experience working in big 4 business modelling teams and strong experience supporting businesses with their financial modelling and decision support needs. Our aim is to provide robust and easy-to-use models that follow good practice financial modelling guidelines and assist individuals and businesses with their financial projection and analysis requirements.