Featuring:
- Extend origination skills with focus on borrower's needs
- Utilise term sheets to distinguish between instruments and credit structures
- Review pricing process including alternative instruments, relative value and secondary loan market
- Examine distribution methodology in developing a syndicate
- Link the syndication process to the optimal structure of a syndications unit
- Explore dynamic tension between the parties involved, both internally and externally
Course background
This intensive three-day Masterclass uses practical case studies and current class exercises to maximise your understanding of the markets and equip you with hands-on experience of the workings of the syndicated loan market. You will learn how to use the markets to your advantage by understanding how to utilise the size, speed and flexibility offered within the syndications arena. Tap into the unique features of the syndicated loan market to maximize the potential for your customers as you help them raise finance from the capital markets.
Who should attend
- Syndication teams
- Transaction management team members
- Client relationship managers
- Secondary market team members
- Credit officers
- Members of borrower treasury teams
- Originators in debt capital markets
- Project / structured finance managers
- Corporate treasurers
- Senior support officers e.g. senior agency team members
- Solicitors / Lawyers
Course benefits
- Utilise evaluation techniques to position the syndicated loan market in debt capital markets
- Identify the importance of syndicated loans to your clients
- Explore bidding alternatives in preparing the mandate
- Dissect a term sheet from a borrower’s perspective
- Review Market-clearing pricing trends
- Unravel the latest legal/documentation issues for syndicated loans
- Develop a syndicated loan transaction strategy and present a personalised syndication analysis
- Mitigate syndication risks
- Parameters for establishing a syndications unit
Day 1
Review of the market, using a self assessment technique, this session will cover
- Key features of the syndicated loan product
- Characteristics
- Definitions
- Overview of global markets
- Volumes and segments
- Geographies
- Players
Preparing a term sheet
- Identifying the crucial features
- Meeting the borrower’s funding needs
- Pricing
- Structuring the transaction
- Documentation
- Strategy
- Flex
- Reading the market
- 'Stretching the envelope'
This session will also touch on the changes in capital adequacy requirements (Basel ll) and the growing importance of ratings for the loan market.
Case study: Evaluating a term sheet
Delegates will be split into groups and asked to evaluate selected term sheets from a borrower’s point of view. Each group will present its findings (role play).
Syndication process and timetable
- Analysis of the phases
- Definition of the roles
Day 2
Pricing a transaction
- Macro-economic factors
- Credit-liquidity cycle
- Critical components
- Sources of information
- Relative value.
Bidding and syndication strategies
- Alternative bidding strategies
- Liquidity analysis
- Fee splits
Delegate exercise: Return calculations
Case study: Developing and articulating a credible syndication strategy.
Delegates are given a scenario of a transaction where they will be required to produce two deliverables: the first is a presentation to the borrower of the proposed syndication strategy, the second is a presentation to the internal authorising committee (often a credit and/or portfolio committee) of a bank seeking to lead the deal. Delegates will be provided with all the necessary data to undertake this task which will build on the two previous sessions of the course.
Day 3
Overview of the secondary market to cover the types of secondary trade and the timetable for closing a secondary trade
- Delegates will deliver their findings of the previous session case study. Each presentation will be evaluated and critiqued.
Case study: Pitching for a mandate
Delegates will be asked to work in groups to respond to a Request For Proposal (RFP) from a major international borrower. In addition to presenting the proposal, the delegates will be required to address a number of other critical marketing points which have been covered earlier in this course. Each group will determine their underwriting commitment and syndication strategy based on guidelines provided to each group. They will be asked to present their proposal to the borrower (role play) and to explain how their institution will execute the transaction.
Making the pitch
- Delegates, in their groups, will make the pitch and the most attractive proposal will be awarded the mandate.
Establishing a syndications business
- Job functions
- Interactions both internal and external
- Evaluating performance
Course summary and close
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Sandy Wax
Sandy Wax works currently as an independent consultant offering training and advisory work. He was an Executive Director and Senior Advisor at Rabobank in London providing syndications training and high-profile deal execution. Before this, he worked at the Royal Bank of Scotland for 8 years where he was responsible for the origination and distribution of syndicated loan facilities successfully syndicating a series of transactions which annually generated in excess of £7m in fee income.
In the early 80s Sandy moved to London and developed considerable international banking experience. He spent 34 years in a variety of positions in debt capital markets at CIBC Wood Gundy Oppenheimer, Chase Manhattan and Citibank. His extensive experience includes responsibility for marketing asset-based corporate banking transactions which ranged from £15 million to £ 3 billion in the UK and Europe. He also developed and managed a profitable Corporate Finance portfolio in the UK and the Netherlands.
Sandy holds an MBA from the Northwestern University, Chicago where he also started his banking career at the Continental Illinois National Bank & Trust Co.
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This course has now expired please email us to find out when the course will next be running.