Debt Capital Markets

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

In this debt capital markets training course, 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 instruments 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 – What are Debt Capital Markets 

• The corporate lifecycle and debt financing options
• Bank debt vs public market debt
• Short-term, medium-term and long-term debt instrument 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 processes 

Session 2 – Short-Term Debt Funding

• Bank debt products
• Overdraft: uncommitted, unsecured, repayable at anytime
• Revolving credit facility (RCF): a committed credit limit
• Public market products
  • Commercial paper
  • Investors and issuers
  • Priced at a 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 and the Credit Rating Process

• What is credit analysis and the credit rating process?
• 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 in Credit Analysis: 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, 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, Investment banking and Capital Markets (including debt capital markets, derivatives and investment banking), 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, auditing and preparing financial statements for various 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. He has 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 holds « Series 7 » and « Series 63 » US licenses.

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

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