---
title: "RCY — Debt and note tracking"
sidebarTitle: "RCY debt and notes"
description: "Simmons Bank term loan and DDTL tracking, and the ten Saxonwald PIK-interest promissory notes."
icon: "file-contract"
---

> **For AI agents:** the complete documentation index is at [llms.txt](/llms.txt). Append `.md` to any page URL for its markdown version.

Two workpapers covering all RCY debt instruments.

<Info>
  **Source:** `Rackson_Workpaper_Instructions.docx` — Part II, Debt & Note Tracking. See [Debt schedules](/internal/customers/rackson/debt-schedules) for the consolidated view across both entities.
</Info>

## 28xxx — Simmons term loan and DDTL tracking

**Owner:** Maureen *(the transition summary assigns RCY debt accruals to Betsy — confirm current owner)*

Tracks the **Simmons Bank Term Loan** and three associated **Delayed Draw Term Loans (DDTLs)** for store buildouts. Drives the principal/interest split and accrued interest for each instrument.

| Instrument | Loan ID | Store |
|---|---|---|
| Term Loan (originally $7,000,000) | 70177332 | — |
| DDTL | 701773401 | 1418 — Hamden |
| DDTL | 701773402 | 1232 — Yonkers |
| DDTL | 701773403 | 1354 — Brookfield |

Customer #: **RAE1101**

<Steps>
  <Step title="Enter each statement">
    When a Simmons Bank statement is received (Term Loan or any DDTL), enter the statement date, balance, principal paid, interest paid, total payment, and resulting end balance in the corresponding tab — **Term, DDTL 1418, DDTL 1232, DDTL 1354**.
  </Step>
  <Step title="Confirm the rate in effect">
    <Warning>
      **The Term Loan and each DDTL may carry different rates.** Update the rate column if a new rate notice has been received from Simmons.
    </Warning>
  </Step>
  <Step title="Check the draw-to-amortization conversion">
    <Warning>
      For **DDTL 1232 (Yonkers)** and **DDTL 1354 (Brookfield)**, confirm whether the loan is still in the draw / interest-only period or has **converted to principal-and-interest amortization** — the payment structure changes once amortization begins. Cross-reference the original DDTL agreement for the conversion date.
    </Warning>
  </Step>
  <Step title="Reconcile to the GL">
    Reconcile the ending balance per the workpaper to the Intacct GL balance for the applicable notes payable account by location/entity. Trace any difference to an unposted payment or an accrual timing difference.
  </Step>
  <Step title="Accrue interest if the statement date doesn't align">
    If accrued interest needs recording at period end, calculate using the **same days-elapsed methodology as the CONA loan tracking workpaper (24700)** and post a GJ accrual.
  </Step>
</Steps>

**Files:** `1_-_Simmons_Loan_Tracking.xlsx`

<Note>
  The client (Mike) **provides the debt schedule** — PBI does not independently maintain or recalculate the amortization. PBI's main task each period is to **accrue interest**, since loan payments often lag by a month.
</Note>

<Warning>
  For roughly two periods, the principal/interest split on the lender's statements has **diverged from the client's original amortization schedule.** Mike updates his schedule to match what the statements actually show — report off the updated, statement-driven schedule, not the original projection.
</Warning>

<Note>
  **Day-count timing matters.** Being off by a day or two changes the interest calculation by roughly **eight dollars or more per day** depending on the balance.
</Note>

## Notes — Saxonwald promissory note schedule

**Owner:** Maureen

Tracks **ten individual Rackson Cayenne, LLC promissory notes** issued to Saxonwald (related-party / investor financing), each carrying a **PIK (paid-in-kind) interest rate with no cash interest payment**. PIK interest compounds into the note balance each period rather than being paid out. Aggregate principal is approximately **$9.3M**.

<Steps>
  <Step title="Calculate each note's PIK interest">
    For each note tab (Note 1 through Note 10, dated by funding date):

    ```text
    beginning balance × annual PIK rate × (days in period ÷ days in year)
    ```

    Each note may carry a **different rate and maturity date** — refer to the header block at the top of each tab: Principal Loan Amount, Annual Interest Rate (PIK), Funding Date, Maturity Date.
  </Step>
  <Step title="Confirm no cash interest is due">
    All interest is PIK and **compounds into the Ending Note Balance**, which becomes the following period's Beginning Balance.
  </Step>
  <Step title="Check for amendments">
    <Warning>
      If any note has been amended (per the amendment references in the Maturity Date note column), **confirm the current rate and maturity reflect the most recent amendment** before calculating the period accrual.
    </Warning>
  </Step>
  <Step title="Roll up the consolidated schedule">
    On the **Consolidated Note Schedule** tab, confirm the aggregate Beginning Balance, Total Interest, and Ending Note Balance sum correctly from all ten note tabs. The **Check Calc** column on each note tab validates that note's math — confirm it nets to $0 or the documented rounding tolerance.
  </Step>
  <Step title="Post the accrual">
    DR Interest Expense / CR Notes Payable — Saxonwald, using the **aggregate Total Interest** figure from the Consolidated Note Schedule.
  </Step>
  <Step title="Tie to the GL and capture changes">
    Confirm the Intacct GL balance for the notes payable account agrees to the Consolidated Note Schedule Ending Note Balance. **Any new note issuance, principal payment, or amendment during the period must be reflected** as a new tab or an update to the existing note's terms before finals are sent.
  </Step>
</Steps>

**Files:** `Saxonwald_Note_Tracking.xlsx`

<Note>
  Confirm the **compounding treatment matches the note terms** each period. The review documentation refers to this facility as "Saxon Wall" — an auto-transcription artifact of "Saxonwald." **No payments are currently being made** on this facility; PBI is only accruing interest. The client sends the tracker monthly, and more frequently mid-period if there is a change such as an additional draw.
</Note>

## Related

- [Debt schedules](/internal/customers/rackson/debt-schedules) — the consolidated view including RRS/CONA
- [Debt and notes review](/internal/customers/rackson/review-process/debt-and-notes) — the reviewer's checklist and the accrued interest consolidation
- [RRS utilities and interest](/internal/customers/rackson/workpapers/rrs-utilities-and-interest) — the 24700 accrual methodology this workpaper borrows