Extract to table

446-5, debt issuance costs — that is, costs incurred by the borrower in connection with the borrowing of money — must be capitalized and amortized over the term of the debt instrument to which they relate

The maturity test alone does not trigger AHYDO classification; both remaining tests must also be met

For AHYDO purposes, however, the YTM must be computed using the issue price of $693,000,000 (rather than par) and all scheduled payments of principal and interest

Test 3 — Significant OID Because the AHYDO tests are cumulative — all three must be met for AHYDO classification to apply — and Test 2 has not been satisfied, it is not strictly necessary to analyze Test 3

The estimated unamortized balance of the original debt issuance costs is therefore: $7,000,000 × (55 months remaining ÷ 84 months total) ≈ $4,583,333 (illustrative) If the Existing TLB was issued with OID (which we have not been able to confirm from the documents currently available), any remaining unamortized OID from the 2020 issuance must also be addressed

Coordination with New Facility Costs It is important to emphasize that the unamortized debt issuance costs from the Existing TLB and the new debt issuance costs associated with the New TLB must be tracked independently