LBO - Modelling Prepayment penalties?

Hi all,

From an accounting / modelling perspective, how do early prepayment penalties flow through the three statements in an LBO?

Thanks!

6,455 WSO Academy Investment Banking Session Reviews: 4.82/5

Class of '29 Sep 2026 Cohort

5.00/5

Investment Banking Mock Coffee Chat

“Constantin is extremely nice and helpful! We talked about some genergal questions I had about recruiting and networking, and then dived into more specific problems I had. He has not only very knowledgable, but also very helpful, sharing also personal ancedotes to tell me what my next steps should be. ”

Class of '28 Jun 2026 Cohort

5.00/5

Investment Banking 7 Stories Review

“Michael was a huge help getting me ready for my Lazard HireVue. I came in with a lot of good material but my answers were running long and I kept rambling through my stories. He walked me through each one and helped me cut them down so they were concise and hit the main points without losing what makes them mine. He was honest about what was not working and gave me clear ways to fix it instead of just general advice. I left the call feeling way more confident and organized going into the interview. I would definitely work with him again.”

See All 11,828 WSO Academy Reviews

1 Comments

WSO Monkey Bot

O

4y

Repellat totam doloremque aut sed et. Adipisci sint ut occaecati dolorem. Aut quisquam deleniti impedit eius.

Reply

Quote

Report

Other

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Trending Content - Investment Banking Forum

+313	I Snuck Into UBS Office And Took A Shit On The Floor	28	1d
+249	Houston 2026 Oil & Gas Investment Banking Rankings	67	1h
+244	Why leave restructuring for M&A?	31	1h
+232	Best Power/Renewables/Energy Teams?	39	11h
+209	Predicted 1Q 2027 Story - UBS IB blames Outlook Outage for Down Quarter	37	8h
+188	Centerview HC group falling off?	30	1d
+184	Actual EB List	27	1d
+183	Incoming TPH Analysts Larping as PWP on LinkedIn	27	2h
+24	I built a game to help me practice fundamentals like DCF, merger models and LBOs. Roast it?	6	3h
+22	What’s the current state of IBD at BofA?	26	1d

Career Resources

1	redever	99.2
2	BankonBanking	99.0
3	Secyh62	99.0
4	kanon	99.0
5	DrApeman	98.9
6	CompBanker	98.9
7	dosk17	98.9
8	GameTheory	98.9
9	Betsy Massar	98.9
10	Jamoldo	98.8

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

LBO - Modelling Prepayment penalties?

Score Breakdown

Feedback

Score Breakdown

Feedback

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

LBO - Modelling Prepayment penalties?

See All Comments - 100% Free

Trending Content - Investment Banking Forum