Key Benefits
- Determine when and how to use different leveraged and mezzanine finance techniques effectively
- Understand the key providers and instruments in leveraged debt markets
- Confidently analyse debt structuring, leverage capacity and exit possibilities
Technical Content
Leveraged Debt Finance Training: Part One
Mezzanine Financing Techniques
Survey of leveraged finance techniques, and when it makes sense to use them
Finding the optimal financing mix: senior debt, equity or mezzanine?
The players and the leveraged finance market today: LBO funds
Private equity houses
BDCs
Advisory firms and others
Assets versus cash flows as support for leverage
Second lien financing
Contractual versus structural subordination
OpCo/PropCo structures
HoldCo notes
PIK notes
Vendor loan notes
Case study: Identifying the best use of alternative financing structures for a small corporation
The mezzanine matrix
Performance-linked participation debt
Advantages and disadvantages of an EBITDA-linked interest rate
What are the exit possibilities?
Setting targets and linking payout to performance
Puts and calls in Mezzanine
PIK (PIYC, PIYW, Toggles)
Pay-in-Kind (PIK) generally
Different types of PIK: PIYW
Toggle
PIYC
“Typical” terms, leverage and pricing
Call protection - hard vs soft call protection
Market trends / recent leveraged finance deals, Investing in Mezzanine debt
Key risks for the PIK holder
Case study: Delegates identify the factors that determine the risk of this "Holdco PIK" in a mezzanine debt real estate deal
Leveraged Debt Finance Training: Part Two
Alternative Lenders
Rise of direct lenders: One-stop solution
Structural flexibility
Speed of execution
Cost-effective
Senior secured loan programmes
Use of the BDC fund structure
Unitranche debt:
Advantages and disadvantages for borrowers
Intercreditor issues
Bifurcated Unitranche
Unitranche and PIKs
Case studies: Examples of Unitranche and mezzanine lending
Leveraged Finance: Debt Structuring and Restructuring Opportunities
The global market for debt and leveraged finance
Benchmarking leveraged structures in the market
Leverage: the good, the bad and the ugly: Performance-driven leveraged finance
Defensive leveraged finance
Deal-driven leveraged finance
Leverage in ownership transition
Identifying corporate debt restructuring opportunities
Case study: The owner of a private company is looking for a cash-out. Delegates estimate the company's debt capacity and the owner's options.
Leveraged Buyout Analysis
This leveraged debt finance course covers buyout types and how they are financed
Sponsor vs trade acquisitions: comparing valuation analysis
Implementing a management buyout: senior, mezzanine and equity finance
Leveraged finance as a temporary capital structure
Spreadsheet-based debt capacity analysis for leveraged finance
Case study: Delegates undertake a step-by-step analysis of the company's debt capacity and the LBO financing possibilities.
Structuring the relationship between the partners
Post-acquisition refinancing and asset sales
Pay down and exit analysis
Leveraged Build-Ups and Leveraged Recapitalisations
Proactive leverage: roll-ups and recaps
Impact of high leverage on business efficiency and shareholder risk
Leveraged recaps with share buybacks or special dividends to enhance shareholder value
Case study: evaluating a potential buyout deal and recommending the best course of action and a suitable financing structure using a mezzanine debt model
Mezzanine Exit Opportunities
This leveraged debt finance course covers the advantages and disadvantages of a contingent payment unit
Terms and pricing of the mezzanine in no-liquidity situations
Appropriate Linkage: Turnover, Cash Flow or Profit?
Exit possibilities and drag-along rights
Case study: evaluating a funding proposal with performance-linked mezzanine debt finance
Training Objectives
Our leveraged debt finance training course covers the following:
Understand the range of mezzanine instruments available
Identify who the providers of mezzanine and leveraged products are
Explain how to structure a mezzanine finance deal
Calculate exit and return characteristics for mezzanine finance products
Explain how alternative lenders and funds operate
Mezzanine financing training also uses practical examples of the mezzanine in leveraged finance transactions
Training Course Summary
This course will ensure you have a solid grounding in theory as well as a practical understanding of the issues, and the material will be both intellectually rigorous and practical. The training approach will be an interactive online workshop with the use of exercises and relevant case studies.
Each session lasts for about four hours (with a break) and can be scheduled in the morning or afternoon. There will be suitable breaks during the sessions. It is recommended that the programme be run over two days, with either morning or afternoon sessions each day.
Your trainer
Course Trainer · 17 yrs experience
- Debt / Leveraged Finance Courses
Our mezzanine financing course trainer is the Managing Director of an international advisory company specialising in advisory and development services to the corporate, banking and finance industry, which he has owned for the past 17 years. He is an experienced corporate finance professional with practical experience and extensive knowledge of corporate and structured finance in global financial markets.
He is a Visiting Fellow in the M&A department and Program Director at Executive Development, Sir John Cass Business School, London, a member of the Visiting Faculty at Fuqua Business School and has previously worked as an advisor to the Overseas Development Administration in the UK, as well as EU PHARE and TACIS programmes throughout Europe and Russia.
Not only does this trainer deliver our leveraged debt finance training, he also has vast expertise in corporate finance, M&A, corporate analysis and structured finance, asset securitisation, risk management, valuation, corporate credit processes, project finance and treasury management. He currently works with many global corporate and banking clients in these areas, and he also acts as an Expert Witness for London law firms in respect of his areas of expertise.
The list of global clients is extensive and covers both European, Middle Eastern, African and Asian markets. In the corporate market, he works extensively with large corporate clients, private equity firms, and private investors, as well as public sector companies such as the NHS and major law firms. He provides advisory and development services to these organisations, either through the relevant departments or directly to senior line management.
He is also a well-known figure within the various training and development companies within Europe, regularly gives seminars throughout the world on his specialist topic areas (including leveraged finance training) and is a recognised expert in this area by many organisations.
Our mezzanine financing course expert was previously the Managing Director of a subsidiary of Union Plc, a London merchant bank, having previously worked with several high-profile global investment banks. He left Union Plc in 1996 to form his own international advisory Company.
The list of financial institutions and corporates with whom he has worked over recent years is extensive and includes Allied Irish Bank, Alpha Bank, Bank of America Merrill Lynch, Bank of China, Barclays, Bayern LB, BT plc, Citibank, China Construction Bank, Credit Agricole, Credit Suisse, Danone, DECC, Deloitte, Dexia, Emirates Bank, E&Y, Euler Hermes, First Gulf Bank, FSA London, Garanti Bank, HBOS, Hohhot Bank Mongolia, HSBC, HVB, Iccrea Banca, Intesa SanPaolo, Central Bank of Ireland, KPMG, L’Oreal, Malta FSA, Mongolian Stock Exchange, Morgan Stanley, Mubabdala, NHS and many others.
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