This course can also be presented in-house via live webinar.
The trainer is a consultant, public speaker and author. He provides training programmes globally to a blue-chip client base on private equity, debt finance, loan documentation and restructuring. He is a senior consultant with Debt Explained, with Grant Thornton UK (Debt Advisory) and is also a Senior Advisor to KPMG Finland.
He has spoken at conferences in the UK, Europe, Australasia & South Africa. He provides training to a wide range of clients on a bespoke in-house basis & publicly through Redcliffe Training Associates. Additionally, he is the Programme Director for the infrastructure/project finance module for the MBA programme at the Cass Business School in London.
Case: Review of key conflict issues between ABL and other funders
Case: Calculate the effective Advance rate on AR
Case: Create a funding structure using ABL
Asset based lending (“ABL”) has been a well established part of the financing environment in the U.S. for many years and has seen increasing volumes globally. Despite this ABL has struggled to gain the same level of acceptance here for three reason; first, a lack of familiarity, if not confusion, with the product; second, borrower’s reluctance to abandon their traditional-bank led facilities and last, the dated perception of the product. These headwinds are abating and 2015 has seen record issuance in Europe as borrowers, both corporate and PE, are increasingly recognizing the multiple benefits of ABL, not least the increased flexibility and reduced cost vis-à-vis RCFs.
In practice the credit markets adopt two distinct approaches to a credit decision: a cash-flow based approach and an asset-based approach which includes asset based lending. Most lenders are familiar with the former but not the latter. Moreover, ABL is often confused with other asset-related financing techniques especially asset-backed lending and asset finance. In simple terms ABL is a form of secured lending where loans are advanced against specific assets. The main focus is on working capital, although ABL also extends to hard assets such as plant, machinery and equipment, real estate and, more rarely, intangibles.
This ABL Course provides practitioners with a practical toolkit to understanding ABL from the perspective of borrow, advisor, supporting professional and lender. It covers the key assets to which ABL is applied and the typical terms and conditions applied to each class. It also identifies the pros and cons in each asset class such as; for example, retention of title in the case of inventory and ineligible items in the case of accounts receivable.
In the U.S. market ABL is frequently used along-side with other forms of lending (especially high yield bonds) and this is partly true of Europe, however, thus far inter-creditor have inhibited these structures from evolving in Europe although these problems have been addressed by asset based lenders who are adopting an increasingly borrower-friendly approach in order to gain market share. For the same reason ABL are also more willing to up their ABL facilities with cash-flow based facilities
The ABL Course will include a number of hands-on cases illustrating ABL in practice which will provide a practical angle to the topic and reinforce the learning experience.
What Redcliffe’s clients are saying about this course
“Good presentation, real life examples, in – depth knowledge”
“Very well thought out & delivered with practical examples”
“Excellent presenter, kept the content interesting, very good at pacing the presentation”
“Lots of industry views / current practices given us”
“Good comparisons between different types of financing”
“Good detailed explanation of different assets”
“Fantastic course - very engaging and full of useful real-life example”
Training Course Summary
|The Structuring & Negotiating Mezzanine, PIK, Second Lien And Unitranche Course||This structured debt course is designed to give insight to the structuring & negotiating of mezzanine, PIK, second lien and unitranch|
|Unitranche & Alternative / Direct Lending||The programme will review the impact of the draft ECB guidance on leveraged transactions and its potential impact on direct lending|
|Restructuring High Yield Bonds Course||Restructuring high yield bonds pose a range of challenges not found in dealing with purely loan-driven structures|