Leveraged loans
Course
In
Description
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Type
Course
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Start date
Different dates available
Objective
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 and understand the factors affecting their availability (first and second lien debt, mezzanine, high yield notes and PIK notes)
- the implications of the key terms and conditions of senior and subordinated debt
- the key elements of an intercreditor agreement and how the relationships between debt providers are governed
- recapitalisations, refinancing, debt for equity swaps
Delegates
- Bankers who are involved in or who are considering Leveraged Finance
- CFOs, Financial Directors and Controllers considering Leveraged Finance
- Private Equity and Venture Capital executives
- Debt Traders
- Hedge Fund managers looking for opportunities
- Fixed Income Managers considering the Distressed Debt market
- Support staff for those dealing in / investing / lending in the Distressed Debt area
- Fund Managers
- Institutional Investors
- Lawyers & Accountants (CPD credit)
- Private Bankers
- Other market professionals and advisors who are dealing with corporate loans in distress or actual default. eg PR, IT, HR etc
A basic knowledge of debt and equity is assumed.
Facilities
Location
Start date
Start date
Reviews
Subjects
- Monitoring
- Market
- Loans
- Fixed Income
- Credit
- Finance
- Financial
- Private
- Accountants
- Equity
- Financial Training
Course programme
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)
Senior debt
High-yield debt
Mezzanine
Payment-in-Kind (PIK)
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
Todays Date: 8 September 2017
Duration 1 day
Leveraged loans