This Financial Covenants course provides a detailed look at commercial aspects of financial covenants and looks under the bonnet at the critical issues that arise in practice. It provides an in-depth look at the covenants as set out in the Loan Market Association precedent together with other covenants that might be used in practice. Reference is made to the Debt Explained loan database which tracks key terms in the larger syndicated TLB market.
Participants will gain an in-depth view of which covenants should be used together with a detailed analysis of the constituents of the covenants and the sponsor friendly add-backs and other sponsor friendly techniques used by borrowers to manipulate the covenants.
The Financial Covenants Course will appeal to practitioners involved in leverage, real estate and infrastructure, such as Lawyers, Private Equity professionals, Bankers in Lending (all departments), Corporate financiers, M&A advisors, Debt advisory and Restructuring. Accounting professionals looking to expand their knowledge of this topic will also benefit as many of the issues embrace legal /documentary considerations. The programme adopts a pan-European approach to the topic but the presenter is able to discuss issues relevant in the USA in view of his exposure to those markets.
To derive full benefit from the programme, it is essential that attendees have a basic understanding of the main / headline elements of a Profit and Loss account (Sales, EBITDA, EBIT etc) and a basic understanding of the differences between P&L /Accrual Accounting and Cash accounting. It is emphasised that participants DO NOT require an understanding of IFRS or GAAP.
A short module summarising the key differences between P&L /Accrual Accounting and Cash Accounting is available on request prior to the programme.
The programme will review the draft ECB guidance on leveraged transactions published in November 2016. The course will examine which type of transactions are covered,which lenders are affected, the approach to EBITDA and the potential implications for players in the debt markets.
An in-depth analysis of financial covenants used in leveraged and real estate loans
This Financial Covenants 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.
Participants will be required to:- (a) calculate how to derive the key elements of the various covenants (b) identify some of the more problematic components in the covenants (c) calculate the various covenants and (d) explain the pros and cons of each of the covenants and why they may be appropriate for one deal but not another. The calculations are relatively simple and are designed to explain the basic principles and reinforce learning.
What Redcliffe’s clients are saying about the course
“An excellent use of case studies & indication of recent trends”
“A good mixture of the sponsor, lender, legal & accountancy perspectives”
“The trainer is clearly very experienced with good market insight which was used to make links to the materials & content”
“Good comprehensive overview of subject”
“Strong use of practical examples to illustrate points”
“Got a view into the top end of market”
“Up to date market information with enthusiastic and knowledgeable trainer.
Clear and useful explanation as to how various components
involved in financial covenants relate to each other”
“Constant Reference to Recent Market Developments and Transactions”
“Encapsulating the Key issues likely to be faced in Negotiation with Sponsors & Borrowers”
As part of our approach to training the financial industry, we ensure all subjects are covered. Please see other related courses within corporate finance.
Corporate Finance Course
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