Leveraged Loans



To give an overview of Leveraged Financing and Debt and to develop an understanding of:

        what leverage finance is and the motivations of the various parties to a leverage transaction

        how to assess a company's borrowing capacity

        how changing market conditions have driven capital structures

        the relative advantages and disadvantages of various debt instruments and understand the factors affecting their availability (first and second lien debt, mezzanine, high yield notes and PIK notes)

        the implications of the key terms and conditions of senior and subordinated debt

        the key elements of an intercreditor agreement and how the relationships between debt providers are governed

        recapitalisations, refinancing, debt for equity swaps




        Bankers who are involved in or who are considering Leveraged Finance

        CFOs, Financial Directors and Controllers considering Leveraged Finance

        Private Equity and Venture Capital executives

        Debt Traders

        Hedge Fund managers looking for opportunities

        Fixed Income Managers considering the Distressed Debt market

        Support staff for those dealing in / investing / lending in the Distressed Debt area

        Fund Managers

        Institutional Investors

        Lawyers & Accountants (CPD credit)

        Private Bankers

        Other market professionals and advisors who are dealing with corporate loans in distress or actual default. eg PR, IT, HR  etc


A basic knowledge of debt and equity is assumed.





  • 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)
      • Senior debt
      • High-yield debt
      • Mezzanine
      • Payment-in-Kind (PIK)
      • 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 cash flow 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               


  • Ranking: contractual and structural
  • Cross border issues in group companies
  • Impact of alternative funding products

Intercreditor Agreements 

  • Structures and key terms
  • Waterfall of funds
  • Treatment of hedging instruments
  • Permitted payments and drag along rights 

Default - Understanding Dynamics and Best Practices 

  • Syndication dynamics, co-ordinating committees and INSOL principles
  • Relationship between the PE partners, lenders and other players
  • Legal rights and forum shopping

Todays Date:

Duration 1 day
Available as an in-house course. Details on request.

Investment Education PLC
45 Old Hall Road, Manchester M7 4JF, United Kingdom
Tel:+44 (0)161 832 3800
Email: mail@investmentEducation.net
Registered in England Number 2129160
VAT Registered Number GB 480 2112 85

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