Build this per sheet, at your haircut draw curve, before comparing or signing (Part 6). Output two numbers per facility: year-one all-in % (includes setup) and steady-state all-in % (fully drawn, setup amortized). Rank sheets on these — never on spread.
Try it on your numbers
This checklist is the manual version — the DebtStack simulator runs the same model interactively.
Inputs
- Committed amount; honest month-by-month draw curve (haircut version); average drawn + average undrawn balance per year; expected draws per year (count & size); benchmark path assumption + the sheet's floor; facility term
Recurring costs (annualize each)
| Line | Basis | Notes |
|---|---|---|
| Interest | avg drawn × (max(benchmark, floor) + spread) | × 365/360 if actual/360 (~+1.4%) |
| Unused fee | avg undrawn × rate | the oversizing tax |
| Draw fees | Σ (draw × fee) | per-draw fees on a recycling facility compound — model actual cadence |
| Agent/admin fees | flat | balance-irrelevant |
| Annual/semiannual diligence | estimate $50–75k | loan audits, field exams, compliance — your expense |
| Backup servicer retainer | contract | who pays — you or the servicing fee? |
| Verification agent / facility admin | contract | |
| Independent director | ~$5–10k | |
| Audited financials | $50k+ | if newly required by the facility |
| Reserve drag | reserve balance × your cost of equity | trapped cash isn't free |
| Insurance premiums | key-person, D&O riders |
One-time costs (year one; amortize for steady-state view)
| Line | Notes |
|---|---|
| Structuring/upfront fee | on committed; recurs per tranche — model the upsize now |
| Your legal | $150–300k first institutional deal |
| Lender legal | yours to pay; capped only if you capped it |
| Initial diligence pass-throughs | background checks, file audit, site visit |
| SPV setup | entity, opinions (true sale / non-consolidation), account setup, DACAs |
| Warrant value | Black-Scholes it or estimate honestly — penny warrants ≈ full grant value; it's compensation, count it |
Outputs
- Year-one all-in % = (recurring + one-time) ÷ avg drawn balance
- Steady-state all-in % = (recurring + amortized one-time) ÷ avg drawn balance, fully deployed
- Cost per dollar deployed — the only number that enters your unit economics
- Dead-deal cost = deposits + your legal-to-date + diligence pass-throughs if it never closes (know it before signing exclusivity)
Scenario columns worth running
- Haircut plan (base case — size the facility to this one, per Part 7)
- Slow ramp (50% of haircut — how bad does unused + minimum-utilization get?)
- Rates fall (does the floor eat the entire benefit?)
- One trigger breach quarter (AR cut + sweep + default margin — the compound month from Part 8)