With the financial world currently undergoing significant changes, one of the most important challenges in banking is to reinforce the restructuring function and refresh leveraged loan techniques given the return of the leveraged loan market. This course enables you to ensure that your staff – whether bankers, lawyers or investment professionals – have the tools to cope with the new environment.

This course will provide participants with the knowledge and skills necessary to:

• Understand the issues in restructurings
• To achieve a satisfactory exit from restructurings and distressed debt
• Deal with the leveraged loan syndication market and its unique techniques
• Build a leveraged loan syndication function

Methodology:

The course will be structured around lectures and recent real-life case studies. Delegates will have chance to enhance their studies though role plays, group discussions and team presentations.

Prerequisites:

A general knowledge of corporate and sovereign credit is assumed. Delegates are not expected to have prior knowledge of leveraged finance or debt restructurings.

Learning Level:

Intermediate

Who Should Attend:

Bankers
Relationship managers
Credit analysts
Loan agency
Distressed investors
Institutional investors
Portfolio managers
Asset managers
Loan traders
Financial advisors
Lawyers
Middle office
Internal Auditors

Day 1

The Leveraged Loan Market
• Overview of Market Definitions, Statistics and Transaction Timetable
• Definition & characteristics of a syndicated leveraged loan
• Common structures, uses and key defining terminology
• Transaction timetable

Overview of Documentation
• Loan Market Association (LMA) and others (e.g. LSTA)
• Investment Grade & Leveraged Primary documentation
• The Documentation cycle

Mandate & Term Sheet
This session will examine the mandate letters and term sheets with discussion on key clauses highlighting the commercial significance for borrowers and lenders

• Types of  facilities common to leveraged loans
• Mandate letters
• Confidentiality & NFR Letter
• Term Sheet

Case study: Mandate for HiLevPac

• Practicalities
• Role of Agent
• Role of MLA/Arranger
• Role of and rights of participating banks
• Building a business as a participant bank
      
Case study: assessment of the merits of an invitation to participate

• Pricing a Leveraged Loan
• Sources of information
• Trade-offs between price, maturity and credit structure
• Assessing market appetite
• Underwriting and distribution strategies

• Sub underwriting
• Syndication
• Club
• Secondary

Syndicating & Closing a Leveraged Loan
• Investor Materials – PIM, Due Diligence Reports, Bank Meeting
• Data Room
• Timetable
• Private vs Public
• Allocation
• Free to Trade

Case Study: HiLevPac at the Close

Day 2

Distressed Debt in Leverage Land - problems and the solutions

Overview and historical perspective on distressed debt and restructurings
• History and development of the market
• Major market players and their roles

Debt structures
• Leveraged vs. non-leveraged structures
• Long term vs short term solutions – haircut or sticking plaster?
• Cram downs
• Due diligence
• Multiple jurisdictions

What causes default? The key problems
• Over-reliance
• Borrowing short
• Over-leverage
• Volatility and Black Swans
• Complacency

Case study: HiLevPac in Distress

Overview of the Agent and the London approach
• Role of the Agent Bank
• The ‘London Approach’ in action
• The Asian variation
• INSOL principles
• Development

Standstill arrangements key principles and structures
•Requirements for successful appointments
• The role and duties of the steering and coordinating committee
• Appointment letters
• The practicalities

Case study: FECSA

Recent defaults and restructurings - the 2009/10 experience
• Background
• Early warning signs
• Legal position
• Creditor dynamics
• The restructuring process

Workshop: delegates will work in small groups analysing recent restructurings

Day 3

Exit Routes from Distressed Debt - Restructuring or Secondary Trading?

The importance of Valuation & the Independent Business Review/Accountants’ Report
• Content of the Independent Business Review
• Going concern or liquidation?
• Techniques
• How to find the level of ‘Sustainable’ debt

Restructuring solutions for Distressed Leveraged Loans
• Write-offs
• New money
• Disposals
• Corporate restructurings and turn-arounds
• Risk / reward

Case Study: HiLevPac in the secondary market

Secondary loan trading of distressed debt
• Development of the market
• Key drivers
• Main players
• Settlement
• Market practice

LMA Par and Distressed documents
• Latest documents
• Key changes
• Legal issues

Which route to take to exit: Restructuring or Secondary Sale?

• Workshop: Trade confirmation

• Course summary and close

• Michael Constant

  Michael Constant is a former vice chairman of the loan market association and was previously head of syndicate at Natixis and managing director of loan syndication at JPMorgan Chase. He has worked in banking for 35 years and has had two main roles during his career – syndicated loans and project finance. He has recruited, developed and led teams in Asia, the Middle East and Europe as well as working in North America and Africa. He has focused on all types of complex, structured financings and has been involved in several restructurings including co-chairing the FECSA steering committee.

Leveraged Loan Syndication & Distressed Debt

Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.

Retail Credit Risk and Credit Scoring

1-4 Oct 2012 (London, UK)

Sovereign Risk Analysis

20-21 Sep 2012 (London, UK)

Credit Risk Modelling

30 May 2012 - 1 Jun 2012 (London, UK)

Valuation framework, derivatives tools and techniques and implementation mechanics

Syndicated Loans

26-28 Sep 2012 (London, UK)

This 3-day training course looks at structuring and pricing syndicated loans.

Corporate Credit Analysis and Financial Modelling

12-16 Nov 2012 (London, UK)

The aim of this 5 day course is to teach delegates how to analyse corporate credit risk and how to assess an appropriate return.

London School of Credit Analysis

9-13 Jul 2012 (London, UK)

During the 5 days, two of the top credit specialists will take you through the regulations, rating agencies, cashflow, debt issues, corporate loan workouts and financial restructuring.