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Capital
Structure Workshop
Length:
3 days interactive learning workshop, 1 day panel review &
evaluations
Course Overview:
The Capital
Structure Workshop is a dynamic, interactive case-based class that
brings together the relationship, interdependence and competing
interests within a client’s capital structure. Participants work in
teams with advanced capital structuring concepts. Through a case study
participants analyze, evaluate and recommend an optimal structure to
meet the client’s request. The proposal is presented to a panel of
business line representatives who critique and evaluate the
participant’s work.
Case Study Options:
- Cases from the
sponsoring organization can be customized to focus on
Recapitalizations, Debt Restructurings, Acquisitions or
Divestitures.
- Cases can take a
comprehensive view of the capital structure or be tailored to focus
on one of the following forms of capital: Senior Debt, Subordinated
Debt, Various forms of Equity and Off Balance Sheet Financing.
Subject Focus and Content:
- Overview of the
analytical framework in which capital structure decisions are made.
- Introduce the
tools and models used to make structuring decisions.
- Review the
investor requirements for each form of capital along with the
strengths and weakness of each.
- Discuss the
historical, current and future trends within the capital markets.
- Apply capital
structure concepts to an individual client.
- Communicate
effectively the issues, challenges and opportunities of the proposed
transaction.
Target Audience:
Relationship managers and product specialist who work within the
context of a comprehensive client relationship. Most participants have
between one and five years of line experience.
Participant Objectives:
- Analyze the
historical performance of the client.
- Derive a
reasonable view of the client’s future direction and assess a
likely outcome.
- Create a series
of projections that identify a meaningful range of outcomes.
- Recommend an
optimal capital structure including repayment / return for each
level of capital employed.
- Evaluate
potential enhancements for each element of the capital structure.
- Discuss
expected, breakeven and downside outcomes.
- Communicate the
proposal and defend its viability.
Participant Requirements:
Participants should
have a good working knowledge of corporate finance, accounting and risk
analysis. Some knowledge of forecasting and financial projections is
helpful.
Instruction Methodology:
During the first 3
days, the workshop utilizes lectures, markets examples, group
discussions, and small team exercises linked to the theme case.
Participants apply each learning module to the case study.
The recommended fourth day is
dedicated to preparing, delivering and defending each team’s proposal
to a panel of business. Participants will receive an evaluation of their
proposal as well as their performance throughout the session.
Credit Boot
Camp
Length:
4 days
Course Overview:
The learning
objective of the Credit Boot Camp is to transition new Analysts and
Associates from the conceptual learning of an entry level training
program to the practical applications necessary for success within the
line of business. The criteria include:
- Refine
analytical skills and apply them in an actual case.
- Apply
knowledge to all aspects of a transaction.
- Provide
the context of credit to the overall client relationship.
- Develop
communication skills to ask questions and seek answers
independently.
- Practice
working in a team environment for mutual benefit and success.
Subject Focus &
Content:
Participants will
analyze and evaluate a case study on the following topics:
- Historical
Analysis and Creating Spreads
- Contracts
and Consideration
- Lending
to the Correct Entity
- Guarantees
and 3rd Party Undertakings
- Collateral
- Structural
and Legal Subordination
- Matching
Facilities to Purpose
- Creating
and Monitoring Loan Agreements
- Cash
Flow Projections and Analysis
- Loan
Presentation: Format and Content
- Risk
Rating Methodology and Application
Target
Audience:
New analysts, associates and team members who are transitioning
from an entry level training program to their line of business
assignments.
Program Profile:
- Pre-Course
Assignment: participants will receive information on the case
study and other reading materials before the session prepare a basic
analysis of the company.
- Program
Structure: an intense, interactive 4 day workshop where
participants will work in teams to complete the case and recommend a
course of action for the client.
With each program topic a group discussion will be followed
by a team case exercise to determine applicability.
- Presentation
Format: teams will present their completed proposal to a
panel of business line representatives.
- Post
Course Feedback:
participants will receive a written evaluation of their individual
and team performance. The emphasis will be on demonstrated strengths
and areas for improvement.
Instruction
Methodology:
The boot camp
utilizes a client based case study from the sponsoring organization.
Participants work with business line specific tools such as presentation
format, risk rating format and projection model to create and present
their proposals.
Debt
Underwriting: Structuring Transactions
Length:
4 to 5 days (depending
on the number of cases)
Course
Overview:
The Debt Underwriting: Structured Transactions course is an
intense, impactful series of discussions and case studies that focus on
sound loan structuring principles. The course brings together the credit
risk, legal and markets issues used in making an underwriting decision.
Participants work in teams to develop and apply fundamental underwriting
and structuring concepts through case studies. They analyze, evaluate
and recommend an optimal debt structure to meet the client’s request.
The proposal is presented to a panel of business line representatives
who critique and evaluate the participant’s recommendation.
Case
Study Options:
- Cases
can be tailored by industry, region and size.
- Cases
from the sponsoring organization can be customized to focus on new
requests, recapitalizations or debt restructurings.
Subject
Focus and Content:
- Overview
of the analytical framework in which loan structuring decisions are
made.
- Review
legal concepts that support lending decisions.
- Introduce
tools and models used to make structuring decisions.
- Review
the other forms of capital and their requirements along with the
strengths, weakness and competing interests of each.
- Discuss
the historical, current and future trends within debt underwriting.
- Incorporate
collateral, guarantees and other 3rd party enhancements.
- Apply
debt underwriting concepts to an individual client
- Communicate
effectively the issues, challenges and opportunities of the proposed
transaction.
Target
Audience:
Relationship
managers and product specialist who are involved directly or indirectly
in the debt underwriting process. Most participants have between one and
five years of line experience.
Participant Objectives:
- Analyze
the historical performance of the client.
- Derive
a reasonable view of the client’s loan request, future direction
of the company and assess a likely outcome.
- Create
a series of projections that identify a meaningful range of outcomes
- Recommend
an optimal debt structure including repayment for each level of debt
capital employed and expect returns for equity capital holders.
- Evaluate
transaction enhancements for the proposed debt structure.
- Discuss
expected, breakeven and downside outcomes.
- Communicate
the proposal and defend its viability through written and oral
presentations.
Participant Requirements:
Participants should have a good working knowledge of corporate
finance, accounting and risk analysis. Some knowledge of forecasting and
financial projections is helpful.
Instruction Methodology:
During the first 3 days, the workshop utilizes lectures, examples,
group discussions and small team exercises in which participants develop
a comprehensive case study.
The
fourth day and optional fifth day are dedicated to preparing, delivering
and defending each team’s proposal to a panel of business line
representatives. Participants will receive an evaluation of their
proposal as well as their performance throughout the session.
Debt
Underwriting: Transaction Details
Length:
1 day
Course
Overview:
The Debt Underwriting: Transactions Details course provides the
important fundamental foundations of underwriting a loan and
understanding the supporting documentation. Through a theme case,
participants explore the legal concepts of credit risk, the practical
applications within the loan documents and the relationship to the
client.
Case
Study Options:
The cases are tailored by industry, region and size to the sponsoring
organization.
Subject
Focus and Content:
- Legal
concepts and contracts: support to the lending decision.
- Business
entities: challenges and opportunities.
- Organizational
structures: lending to the correct entity.
- Guarantees:
legal concepts, issues and forms.
- Collateral:
types and how to secure.
- Banking
Regulations: overview of key current issues.
- Loan
Agreements: creating and monitoring effective documents.
- Lender
Liability and Bankruptcy: preparing on the front-end.
- Loan
Policy: linking the standards with the client.
Target
Audience:
Relationship managers, product specialist and middle office personnel
who are directly or indirectly involved in the debt underwriting
process. Most participants have between 6 months and five years of line
experience.
Participant
Objectives:
- Understand
the underlying legal concepts of credit risk.
- Build
comfort and confidence using the loan documents.
- Raise
awareness of business issues involved in underwriting and monitoring
loan.
- Enhance
the capability to create a loan agreement that both the bank and the
client can work within.
- Evaluate
realistically the transaction enhancements for the proposed debt
structure.
- Be
able to communicate the legal concepts and issues internally to
other team members and externally when negotiating with a client.
Participant
Requirements:
Participants should have some working knowledge of corporate finance,
accounting and financial risk analysis.
Instruction
Methodology:
The course uses lectures, documentation examples, group discussions and
small group exercises to reinforce the concepts and tie them to
practical applications in the business line.
Debt
Underwriting: Overview
Length:
3
days
Course
Overview:
The Debt
Underwriting: Overview course is designed to raise the credit risk
awareness and understanding of individuals who are involved in
supporting the debt underwriting process. Through practical examples and
business line applications, the course brings together financial
analysis, legal and market issues used in making the underwriting
decision.
Case
Study Options:
The cases are
tailored by industry, region and size to the needs of the sponsoring
organization.
Subject
Focus and Content:
- Module
One: Historical Analysis
- Business
and Industry
- Ratios
- Income
Statement
- Balance
Sheet
- Cash
Flow Statement
- Module
Two: Forecast Analysis
- Preparing
a forecast
- Interpreting
the results
- Sensitivity
Analysis
- Module
3: Underwriting Fundamentals
- Legal
and documentation issues
- Basic
underwriting principles
- Credit
Enhancements and 3rd Party undertakings
- Module
Four: Monitoring for performance
- Risk
Ratings
- Loan
Agreement Compliance
- Lender
Liability
- Bankruptcy
Target
Audience:
Middle Office, product specialist and administrative team
members who are involved directly or indirectly in the debt underwriting
process.
Participant
Objectives:
- Understand
the historical and projected performance of a client
- Relate
key risk assessment to the relationship with the client
- Identify
transaction enhancements for the proposed debt structure.
- Monitor
existing loans with more clarity.
- Communicate
client challenges and opportunities more effectively with other team
members.
Participant
Requirements:
Participants should have a general working knowledge of
corporate finance and accounting.
Instruction
Methodology:
In addition to a
theme case, the workshop utilizes lectures, examples, group discussions
and small group exercises to maximize participant’s ability to retain
and apply the concepts of the class in their business line assignments. |
