Содержание
- 2. Agenda Overview Perspective Creating the structure Covenants Amsterdam Institute of Finance May, 2008
- 3. Overview Amsterdam Institute of Finance May, 2008
- 4. Transaction Framework Strategic Issues Do I make the acquisition? Valuation How much do I pay? Financing
- 5. Transaction and Structuring Overview Accounting Tax Corporate Law Securities Regulatory and Antitrust Transaction Environment Contract Structuring
- 6. Structuring Environment Financial Preferences: Dilution Control Risk Tolerance Flexibility Exit Needs Market Conditions: Depth Pricing Requirements
- 7. Different Menus Bull Market Menu Bear Market Menu As the credit curve shifts, the menu that
- 8. Financing Approaches Left Hand Side Financing Right Hand Side Financing Based on the cash flow of
- 9. Perspective Amsterdam Institute of Finance May, 2008
- 10. Capital Market Specific Factors Credit Specific Factors Customer Objectives Valuation Structuring Perspective Amsterdam Institute of Finance
- 11. Acceptable leverage levels Interest Rate Amortization Acceptable tenor of senior debt Asset coverage Size of issue
- 12. Public Debt vs. Private Debt Relative Value Analysis Domestic vs. International Issuance Fixed vs. Floating Rate
- 13. Amount of available cash flow Reliability of cash flow Credibility of projections Credit Specific Factors Amsterdam
- 14. Issuer Objectives / Impact (1) Amsterdam Institute of Finance May, 2008
- 15. Issuer Objectives / Impact (2) Amsterdam Institute of Finance May, 2008
- 16. Critical Path & Decision Framework Financial Flexibility Target Credit Rating Determine Capital Structure Hedge No Action
- 17. Creating the Structure Amsterdam Institute of Finance May, 2008
- 18. Rule of Thumb Measures Balance Sheet Model Cash Flow Model Detailed Model Matching markets to the
- 19. Deal Financial Arithmetic Amsterdam Institute of Finance May, 2008
- 20. Netherlands LBO Volume by Industry Source: April 2008 EuroStats; www.lcdcomps.com
- 21. Purchase Price Minimum/Maximum Recapitalization Dividend Debt Refinancing Callability Premiums Tax Issues Expenses Other Uses Financing Need
- 22. Revolver Tied to advance against current assets Crossing liens Term Loan A Macro: Ratio of 3-4x
- 23. Current Asset approach Use standard advance rates Accounts Receivable 80% Inventory 60% PP&E 40% Consider the
- 24. Term Loans = Maximum Senior Debt - Revolver Focus is on Free Operating Cash Flow Market
- 25. Typical bank financings as structured as follows: Revolving Credit Term Loan A (amortising) Term Loans B
- 26. Long Term Debt = Max Total Debt - Max Senior Secured Debt Senior unsecured Sub Debt
- 27. Subordination Senior lenders are concerned with the implications of having high yield investors at the table
- 28. Contractual Subordination Holding Company Intermediate Holding Company Operating Company Operating Company Operating Company 100% Equity Interest
- 29. Structural Subordination Holding Company Intermediate Holding Company Operating Company Operating Company Operating Company 100% Equity Interest
- 30. Retranche Increase Pricing Lower Leverage Lower Purchase Price Seller Paper Increase Equity Senior Notes to cover
- 31. Covenants Amsterdam Institute of Finance May, 2008
- 32. PURPOSE: maintain the original deal WHY Agency problem due to asymmetric information Adverse Selection Moral Hazard
- 33. Categories Affirmative The maintenance, preservation and insurance of corporate assets and the compliance of environmental, ERISA
- 34. There are no standard covenants. They must be tailor fit for each deal and loan structure.
- 35. First-lien leveraged loans covenant statistics: Average number and distribution Excludes covenant-lite deals Amsterdam Institute of Finance
- 36. Amsterdam Institute of Finance May, 2008 Incidence of key covenants in first-lien leveraged loans Excludes covenant-lite
- 37. Amsterdam Institute of Finance May, 2008 Year One Debt/EBITDA Headroom as a Percentage of Covenant Level
- 38. Amsterdam Institute of Finance May, 2008 Percent of First-lien leveraged loans with one maintenance finance covenant
- 39. Average Debt/EBITDA Covenant Level and Projected Ratio for LBOs 1999 – 1Q08 Amsterdam Institute of Finance
- 40. Covenant Levels and Issues Covenants are negotiated between the lender and borrower. Covenant levels will affect
- 41. Translating Capital Structure and Debt Capacity into a Detailed Financing Structure. Conclusion Amsterdam Institute of Finance
- 42. Project Gear Amsterdam Institute of Finance May, 2008
- 43. Project Gear - Facts Potential deal for a company in auction. Private automotive parts company based
- 44. Project Gear - Facts Amsterdam Institute of Finance May, 2008
- 45. Project Gear - Facts Amsterdam Institute of Finance May, 2008
- 46. PMD Stats Amsterdam Institute of Finance May, 2008
- 47. Project Gear - Quick Analysis Amsterdam Institute of Finance May, 2008
- 48. Project Gear - Quick Analysis Amsterdam Institute of Finance May, 2008
- 49. Project Gear - Base Case Assumptions : 8 % growth Margins gradually improve to 14% Allow
- 50. Project Gear - Base Case Amsterdam Institute of Finance May, 2008
- 51. Project Gear - Downside Assumptions : 0% growth Margins flat (slight decline) to 11% Do not
- 52. Project Gear - Downside Amsterdam Institute of Finance May, 2008
- 53. Project Gear - Worst Case Assumptons : 0% growth AND LBO/other causes lead to significant lost
- 54. Project Gear - Worst Case Amsterdam Institute of Finance May, 2008
- 55. Project Gear - Responses (How & When) Year 2007 - Probably waive with revised management plans
- 57. Скачать презентацию