Advanced Borrowing Techniques
Structuring and managing more complex borrowings
Key Facts
| Location | London |
| Length | 1 day |
| Fees | ACT Members and Students £550.00+VAT Non Members |
| Max group size | 25 |
Book Now
For further information about this course please contact:
Maggi McDonnell, Training Manager
T: +44 (0)20 7847 2559
E: training@treasurers.org
Further information
Extremely worthwhile and has identified areas that are of critical importance to borrowing. Padraig Brosnan, Senior Treasury Executive, ESB
Course overview
This course is based on the various forms of borrowing available to the more sophisticated and typically larger businesses. It discusses borrowing instruments, the issue of managing the credit rating and covers usage of derivatives.
The course covers real life complexities such as inter-company funding, different types of lender, seniority of debt and the effects of the CDS market. A case study is used to illustrate a range of practical complexities arising from a real life refinancing.
The course assumes an understanding of the fundamentals of corporate borrowing, as provided in the Core Borrowing Techniques course.
A 10% discount will be offered when booking both the Core Borrowing Techniques and Advanced Borrowing Techniques courses on consecutive days.
Table of Contents [hide]
Programme
Aspects of corporate finance
- Capital structure
- Leverage, risk and returns
- Credit risk of firms in different sectors and life cycles
The view from the lending side
- Banks and Basel II
- Bank relationships
- Credit Default Swap (CDS) markets
Markets for borrowing
- Bank market
- Bond market, issuance and retirement
- Other markets, commercial paper, private placement etc
Forms of bank borrowing
- Uncommitted versus committed
- Bilateral versus syndicated
- Term versus revolving
- Non bank lenders in public and private markets
The lending contract
- Key issues
- Control of the borrower
- Detailed aspects of documentation
- Financial covenants
- Bank type documents, bond type documents
Credit ratings
- Investment grade versus speculative grade
- The rating process
- Key factors in ratings / ratio analysis
Financial strategy
- Liquidity risk
- Legal structures including
- Inter company lending
- Project finance
- Joint ventures and minorities
Use of derivatives to manage risks
- Swaps
- FRAs
- Options
The course concludes with a practical and interactive case study featuring a company raising debt. Participants will work in breakout groups to consider the issues faced by the company and propose and explore alternative solutions.
What you will gain
Building on the Core Borrowing Techniques course content, Advanced Borrowing Techniques will develop participants’ understanding of the structuring and management of more complex borrowing arrangements and look at how financial strategy, including rating strategy, plays a large part in determining how a firm might raise borrowed funds. Participants will understand how derivatives can be used to manage some of the risks of debt.
Who will benefit?
Corporate treasurers and other financial professionals who are involved in arranging borrowings, and who anticipate exposure to more complex arrangements.