USA GAAP and IRS debt fee amortization

[bwajd]

Hello,

As a note: I am by no means an accountant or an accounting expert (read: I know the bare minimums). I work as an analyst in an IB setting.

I am looking for information regarding fee amortization (from the borrower's perspective) relating to different debt options. Normally, I would assume straight-line amortization over the life of the instrument, but am going on a bit of a fact-finding mission. I am interested in information related to both a GAAP and IRS standpoint. For example, an upfront fee is normally amortized over hte life of a term loan in GAAP to adjust EPS year-over-year, but from an IRS standpoint, is the cash paid-out incrementally or wholly in the first year?

Types of debt:
Revolver
Term Loan A
Term Loan B
High Yield Bonds
Underwritten / Syndicated deals for M&A
Bridge loans

Types of fees:
Upfront fees
Arrangement fees
Syndication fees
Commitment / ticking fees

As much information as possible would be helpful, and in as many different scenarios as possible. For example: can the amortization schedule change if prepaying a loan? how to track fees as the amount drawn on a revolver changes?

 

[smallbushelp]

This really isn't a "fact finding" forum. If you have a specific question, most folks are happy to see how they can help. But asking for a blanket analysis on such a broad topic is a bit much.

That being said, to answer one of your questions, generally, the amortization schedule does not change when prepaying a loan but it will depend on the terms of the loan.