Leveraged Loans - In house
Short course
Inhouse
Description
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Type
Short course
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Methodology
Inhouse
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Duration
1 Day
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Start date
Different dates available
To give an overview of Leveraged Financing and Debt and to develop an understanding of: what leverage finance is and the motivations of the various parties to a leverage transaction "how to assess a company's borrowing capacity "how changing market conditions have driven capital structures "the relative advantages and disadvantages of various debt instruments & understand the factors affecting their availability "Implications of the key terms & conditions of senior & subordinated debt "Key element of an intercreditor agreement "recapitalisations, refinancing, debt for equity swaps. Suitable for: Bankers involved in or who are considering Leveraged Finance. CFOs, Financial Directors & Controllers considering Leveraged Finance. Private Equity & Venture Capital executives. Debt Traders. Hedge Fund managers. Fixed Income Managers considering Distressed Debt market. Support staff for those dealing in / investing / lending in Distressed Debt area. Fund Managers. Institutional Investors. Lawyers & Accountants. Private Bankers. Other market professionals & advisors who are dealing with corporate loans in distress
Facilities
Location
Start date
Start date
About this course
A basic knowledge of debt and equity is assumed
Reviews
Subjects
- Risk
- Market
- Loans
- Finance
- Financial
- Private
- Trade
- Banking Financial Services
- Equity
- Financial Training
- Sales Training
Course programme
Content Introduction • The rationale of using Leverage • Market trends: leverage multiples, capital structures, parties and instruments • Current market conditions and key players • Impact of the credit crunch and economic downturn • Definitions: primary buyouts, secondary buyouts, dividend recapitalisations Debt Instruments • Deal purpose and structural features • Nature of financial instruments used in leveraged transactions and their risk profiles: (term loans, revolvers, working capital, bridge finance, acquisition, restructuring and CAPEX lines) o Senior debt o High-yield debt o Mezzanine o Payment-in-Kind (PIK) o Vendor notes • Equity: types of equity and their impact on debt providers Identifying Winners and Losers and Modelling Performance • Identification of key drivers and linkage to fundamental analysis • Modelling: building assumptions, sensitivity and scenario analysis, benchmarking • Valuation techniques and pitfalls in leverage finance Leverage Structures • Structuring debt: amount, currency, tenor, drawdown and amortisation profile • Impact of the institutional investor in determining debt structures Assets versus cash flow influence on structures – what exit strategy (trade sales, IPOs, buyouts and recapitalisations) • Use of securitisations, sale and leaseback • Impact of market conditions on exit strategies • Funding and covenant structures - their impact on ratings and pricing • Devising and monitoring effective borrowing base structures Terms and conditions • Debt covenant packages • Syndication control – voting levels and implications • Financial and undertaking covenants • Material adverse effect clauses • Transfer rights and restrictions • Sub-participations and elevations Seniority • Ranking: contractual and structural • Cross border issues in group companies • Impact of alternative funding products Intercreditor Agreements • Structures and key terms • Waterfall of funds • Treatment of hedging instruments • Permitted payments and drag along rights Default - Understanding Dynamics and Best Practices • Syndication dynamics, co-ordinating committees and INSOL principles • Relationship between the PE partners, lenders and other players • Legal rights and forum shopping
Leveraged Loans - In house