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Leveraged Loans Course

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Uploaded by on Jul 31, 2010

TOPICS THAT WILL BE TAUGHT:

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) 1. Senior debt
2. High-yield debt
3. Mezzanine
4. Payment-in-Kind (PIK)
5. 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 cashflow 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 ...

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http://financialveritas.com/index.php/training/categories-search/details/304?...
http://financialveritas.com/index.php/training/categories-search/details/303?...
http://financialveritas.com/index.php/training/categories-search/details/241?...
http://financialveritas.com/index.php/training/categories-search/details/221?...
http://financialveritas.com/index.php/training/categories-search/details/240?...
http://financialveritas.com/index.php/training/categories-search/details/303?...
http://financialveritas.com/index.php/training/categories-search/details/239?...
http://financialveritas.com/index.php/training/categories-search/details/241?...
http://financialveritas.com/index.php/training/categories-search/details/268?...
http://financialveritas.com/index.php/training/categories-search/details/304?...
http://financialveritas.com/index.php/training/categories-search/details/221?...

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