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Debt Capital Markets

Understand and analyse the characteristics and inherent risks of capital and debt instruments

Debt Capital Markets Training Course

A one-day course

  • Practical workshop by an experienced trainer, an ex-investment banker with years of experience in Europe and the Middle East
  • Recent capital markets transactions analysed in detail with participants
  • Use of detailed Excel financial models to perfect understanding of transactions
  • Comprehensive material covering all aspect of debt capital markets
  • Delegates encouraged to bring their own scenarios to ‘solve’ during the session

Participants start by covering the main debt products available to corporates. Both long and short term and public and private financing options are explained. The bond issuance process and key documentation are discussed. Participants then gain an understanding of the credit rating process by examining the assessment of an investment-grade corporate. Finally, the session covers covenants in debt documentation. We will review specifically defined terms, including incurrence and maintenance covenants, negative pledge and change of control provisions. We will put the covenants into practice through the review of companies’ financial statements.

Section 1 – Debt Capital Markets

  • The corporate lifecycle and debt financing options
  • Bank debt vs. public markets debt
  • Short-term, medium-term and long-term debt options
  • Bond issuance process
    • Due diligence
    • Pricing: yield, all-in-costs
    • Prospectus and listing
    • Roadshow
    • Syndicate and bond allocation
    • Market making and after-market
  • Rating agencies and their process 

Session 2 – Short-Term Debt Funding

  • Bank debt products
    • Overdraft: uncommitted, unsecured, repayable at anytime
    • Revolving credit facility (RCF): a committed credit limit
  • Public markets products
    • Commercial paper
    • Investors and issuers
    • Priced at discount to par 

Session 3 – Medium to Long- Term Debt Funding

  • Bank debt
    • Term loan
    • Syndicated loans
  • Publicly issued bonds
    • Medium-term notes programme and long-term bonds
  • Bonds specifics
    • Coupon, price and yield, all-in-costs
    • The yield curve and basic explanations (inflation, risk and supply-demand dynamics)
    • Benchmark: local government bonds and mid-swap rate
    • Credit spread overview

Case Study I: Participants analyse the recent Apple bond issuance, term sheet and prospectus 

Section 4 – Credit Analysis

  • What is credit analysis?
  • Key credit analysis principles: cash-based, forward-looking, peer group
  • Rating scales: S&P, Moody’s and Fitch
  • Probability of Default (Pd) and Loss Given Default (LGD)
  • Issuer and issue ratings
  • Cash flow analysis from a credit point of view
    • FFO, FOCF, DCF
    • Credit ratios: most common ratios (FFO/Debt, Debt/EBIT, EBITDA/interest)
  • Overview of rating agencies

Case Study II: Participants perform the rating of a corporate issuer based on S&P and Moody’s methodologies 

Section 5 – Covenants

  • Affirmative vs. negative covenants
  • Financial vs. non-financial covenants
  • Incurrence vs. maintenance covenants
  • Setting covenants based on management business plan
  • Financial covenants and illustration with company financials
    • Cash flow cover
    • Fixed charges
    • Net worth covenants
    • Interest cover – variations of ratios
    • Leverage – variations of ratios

Case Study III: Participants decide on most appropriate financial covenants for a corporate issuer

The trainer has more than 20 years of experience in accounting and investment banking. He is an experienced financial trainer who has delivered courses for leading financial institutions and central banks in the City of London, Wall Street and around the world in the areas of Corporate Finance, Valuation (Industrials and Banks), Financial Modelling, M&A, LBO, Financial Accounting, Capital Markets, Bank Regulatory Capital and Financial Risks, both in English and French.

He began his career as a Credit Analyst at Banque Continentale in Luxembourg, where he conducted credit analyses for short and long-term credits and participation in loan syndications. He then worked as a Senior Auditor for Deloitte & Touche in Luxembourg companies, auditing and preparing financial statements for a variety of banks, insurance, investment funds, venture capital and commercial companies.

He continued his career in Investment Banking at Citigroup (ex-Salomon Smith Barney) in London and New York where he worked on a variety of M&A, LBO and debt offerings, mainly for financial services clients. He was involved in the EUR 20 billion public offer of Crédit Lyonnais by Crédit Agricole, one of the largest European banking transactions.

He then worked as a Vice-President in the internal M&A department of Barclays Bank in London where his experience included the acquisition of ABSA for US$ 5 billion, one of the leading South African banks, the purchase of ING Private Banking in France and the failed acquisition of Banco Atlantico in Spain.

Recently, he was a Director in the Investment Banking department of Commercial International Bank (CIB), the largest non-government bank in Egypt, where he has successfully completed several transactions including two sell-side M&A deals, one follow-on equity offering and a delisting. He worked extensively with leading sovereign wealth funds, private equity firms and prominent families in the UAE, Qatar, Kuwait and Saudi Arabia.

The trainer is currently a senior advisor to an M&A practice based in Paris and focuses on buy-side and sell-side transactions, mainly in the technology sector.

The trainer has an MBA in Finance from the Kellogg School of Management in Chicago and a Bachelor of Science in Finance from Groupe INSEEC (“International Management Institute of Paris”). He also holds « Series 7 » and « Series 63 » US licenses.

This course is a practical workshop by an experienced trainer, which will give you a comprehensive understanding of debt capital markets, including the key markets players, short and long-term funding, bond issuance, credit analysis and covenants.

This course is aimed at professionals with an existing knowledge of financial markets and financial products, either with knowledge through theory, studies or direct practice.

Who Should Attend

Anyone with an interest in the subject seeking either an introduction, an update or a refresher.

Knowledge Requirements
None necessary although a basic knowledge of the sector would be helpful.

Have this course presented In-House

  • On a date, time and in a location of your choice
  • Topics expanded or deleted to your bespoke requirements
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