| 1. The Syndicated Loan Market | Download |
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| [a] Overview of Market Definitions, Statistics and Transaction Timetable |
- Definition & characteristics of a syndicated loan. Common structures, uses and key defining terminology
- Review of the markets broken down by volumes, geographies, currencies, maturities, ratings, arrangers and investors
- Survey of macro-economic factors affecting the market. Phases and milestones of the syndication process and Timetable
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| [b] Overview of Documentation |
- Loan Market Association (LMA) and others (e.g. LSTA)
- Investment Grade & Leveraged Primary documentation
- The Documentation cycle
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| [c] Mandate & Term Sheet |
- Types of syndicated facilities. Mandate letters
- Confidentiality & NFR Letter. Term Sheet Practicalities
- Role of Agent. Role of MLA/Arranger
- Role of and rights of participating banks. Building a business as a participant bank
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| [d] Practicalities |
- Role of Agent. Role of MLA/Arranger
- Role of and rights of participating banks. Building a business as a participant bank
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| Case study: |
- Assessment of the merits of an invitation to Participate
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| [e] Pricing a Syndicated Loan |
- Sources of information. Trade-offs between price, maturity and credit structure
- Assessing market appetites
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| [f] Underwriting and Distribution Strategies |
- Sub underwriting
- Syndication, Club
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| Case study: |
- Delegates are split into groups and asked to work on an invitation to underwrite an investment grade transaction based on specific scenarios.
Tasks Include:
- Evaluation of the invitation. Production & assessment of Comparables
- Producing and refining a Bank Universe. Liquidity Analysis
- Assessment of the other factors which can influence the
- Decision. Presentation of the recommendation to Business & Credit
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[g] Roles & Responsibilities
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- The role of the participating bank. Why does a bank become a participant?
- What must a participant do – and not do?
- What does a participant need from the arrangers?
- Current market conditions for participants
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[h] Responsibilities in a Syndication Unit
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- Functions required in a syndication unit. How to undertake the roles in a transaction
- Systems, Market practice and sensitivities
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2. Syndicating & Closing a Syndicated Loan – the role of an MLA/Bookrunner
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Investor Materials – PIM, Due Diligence Reports, Bank Meeting
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- Data Room, Timetable
- Private vs Public, Closing, Allocation, Free to Trade
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Secondary Loan Trading
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- Development of the market, Key drivers, Main players
- Settlement, Market practice
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Case study:
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- Evaluating a secondary trading opportunity
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The Loan Agreement
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- Detailed review of the LMA recommended forms
- The key concepts in syndicated loan documentation including pari passu provisions and trigger points / default
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Security
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- Priority ranking. Different types of security
- Clauses in security documentation
- Granting and perfecting collateral. Asset-based transactions
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3. Winning Mandates and Selling Down
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The Corporate Treasurer’s Perspective
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- The issues and challenges from the borrower’s perspective
- How to win mandates and build client loyalty. Techniques for managing bankers
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Specialist Syndication Markets
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- Project & Infrastructure Finance. Leverage Finance
- Real Estate. Financial Institutions. Emerging markets
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Bidding for the Mandate
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- How to structure the syndicated deal
- Analysing the right price. Bidding strategies
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Case study:
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- Delegates will work in groups on a case study involving the assessment of an invitation to underwrite a structured financing. Delegates will use a summary term sheet to
- Evaluate alternative syndication strategies Conduct a Comparables Analysis set up an Investor
- Universe, complete a Liquidity Analysis. Yield calculation for brackets in a deal. Cost and usefulness of underwriting
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