Uploaded by FINANCIALVERITAS 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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Category:
Tags:
- leveraged
- finance
- syndicated
- loan
- high
- yield
- bond
- junk
- LBO
- M&A
- mergers
- acquisitions
- private
- equity
- hedge
- funds
- CLOs
- CDOs
- collateralized
- debt
- obligations
- secondary
- trading
- leverage
- syndication
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