Glossary / finance terms

Rapid amortisation

A contractual mode in which available cash is redirected toward accelerated principal repayment following a trigger.

Randeep Bubbra | Lawyer | Making the next generation of infrastructure financeableUpdated 26 October 2026

How it works

Rapid amortisation is a mode in which all available cash, after senior costs, is used to repay securitisation notes as quickly as possible. It is triggered by events such as a low DSCR, a manager default or a failure to refinance by the ARD.

In GPU and data centre deals

In data centre ABS, rapid amortisation protects noteholders if the pool deteriorates, by cutting off distributions to the sponsor. For sponsors it is a serious event because it stops cash leaving the structure, so the trigger levels and cure rights are heavily negotiated.

What gets negotiated

DSCR and other trigger levels
Whether triggers can be cured
Order of repayment between classes
Effect on management fees

Why the distinction matters

Trace the trigger, senior expenses and payment order. A faster repayment rule cannot create cash that the assets do not earn.

Read the structure

A practical reading of securitised data-centre cash flows, triggers and expected repayment.

Data centre ABS: follow the pool and the waterfall ↗

In the filed deals

Vantage Cardiff's Rapid Amortisation Event occurs if the average DSCR falls below 1.20x.

For in-house counsel