Go from a borrower file to a committee-ready credit view.
Start with the borrower file. Cap Orbit produces a clean, source-traced read, sizes and stresses the debt against it, and drafts the credit memo downside-first in your house voice.
The credit team’s day
From a borrower file to a committee-ready credit view.
The analyst directs each step, from source-traced file read to debt sizing, downside stress, and the memo that goes to committee.
- 01
01
Read the borrower file clean
Normalize the rent roll and the operating statement into source-traced extracts with a standard NOI bridge, the below-the-line items pulled back out, and the diligence flags surfaced up front for the analyst to review.
- 02
02
Set the debt terms
Quote the terms from a filed term sheet, or assume them and label them assumed, so the deal can be levered before a quote exists: rate, leverage caps, term, interest-only, amortization, floor, cap, and fees.
- 03
03
Size and stress
Size the loan to the binding constraint and read the coverage year by year, the breakeven occupancy, and the downside scenario, with a sensitivity grid that flexes returns against exit cap and exit NOI.
- 04
04
Draft the credit memo
Approve a section-by-section outline first, then the memo is drafted downside-first, every figure traced to the model or a cited source and any missing number left as a flagged blank for your call.
01 · Size and stress the debt
Size the loan, read coverage, and run downside from one model.
- The loan sizes to the binding test: the lesser of the loan-to-value, loan-to-cost, debt-service-coverage, and debt-yield constraints, with house caps you control: 65% max LTV, 70% max LTC, a 1.25x minimum DSCR, and an 8% minimum debt yield.
- Coverage runs year by year across the hold: NOI, debt service, DSCR, debt yield, and cash-on-cash, alongside the breakeven occupancy at which the property covers its costs and its debt service.
- Every model carries Base, Upside, and Downside at once on a single switch, so the downside scenario re-prices against the same workbook, and a built-in sensitivity grid flexes returns against exit cap and exit NOI without a rebuild.
Fig · The debt sized to the binding test, stressed in place
02 · The credit memo, downside-first
The lender memo, built from the borrower file and the model.
- The credit memo is drafted from the loan terms, the borrower file, and your credit underwrite, opening with borrower, facility, amount, rate, term, LTV, DSCR, and debt yield, then the support behind them.
- It leads where a lender reads: the annual DSCR and debt yield, the operating comparison, the sensitivity, and the downside scenario, with the capital stack, the borrower’s net worth and liquidity, and the collateral laid in.
- You approve the outline before a word is drafted, every figure traces to the model or a cited source, and a regulated bank can add a proposed ratings section for internal PD, expected loss, and risk class.
Fig · The credit memo, drafted and rendered in your house format
03 · Carry covenant standing through the hold
The same file tracks performance after it funds.
- Covenant terms are read straight from the loan agreement and its amendments and tested against the model’s current metrics on each covenant’s stated basis, trailing-twelve or otherwise, into a compliance report.
- Each test states what trips it and the consequence: a cash trap or sweep, blocked distributions, technical default, or springing recourse, plus the cure path, every line cited to its loan-agreement section.
- You review and sign off on the full schedule before it becomes the reference of record; every covenant term is sourced to the agreement.
Fig · Covenant standing tested against the live model
The work sharpens the credit view. The approve-or-decline decision stays with your team.
Cap Orbit produces the numbers, the stresses, and the draft. The analyst directs every step, signs off on every output, and owns the approve-or-decline.
Assumptions are labeled until a term sheet is filed
Debt terms and the exit cap run as house assumptions, each one labeled assumed, until a real term sheet is on file.
The covenant schedule is yours to sign off on
The covenant check reads the loan agreement and the model. The compliance schedule is presented for your review before it stands as the reference of record.
The analyst’s voice, the analyst’s conviction
The memo is drafted in your house style and voice, with the credit recommendation left for your team to own.
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