Loan Syndication – Structuring, Selling Down & Documentation

This practical 3-day training course teaches you everything you need to know about loan syndication and its challenges in the current market with practical advice as well as a look at the specialist markets – restructurings, project & infrastructure, leveraged, FIs and emerging markets Course Focus and Features Thorough understanding of the syndicated loan market Syndication of loans Pricing a syndicated loan Building a syndicated loan business as a participant The evolution of the debt market The principal elements of syndicated loans. Examining the changes in practices, including the latest European techniques Examining key legal issues and current documentation Identifying strategies for all participants Building an effective syndication strategy An alternative exit route - secondary trading Who Should Attend? Syndicated loan professionals Structured finance originators Relationship managers Credit analysts Loan Agency & Middle Office Institutional investors Portfolio managers Asset managers Loan traders Financial advisors Lawyers
Day 1 The Syndicated Loan Market Overview of Market Definitions, Statistics and Transaction Timetable Definition & characteristics of a syndicated loan Common structures, uses and key defining terminology Review of the markets broken down by volumes, geographies, currencies, maturities, ratings, arrangers and investors Survey of macro-economic factors affecting the market Phases and milestones of the syndication process and timetable Overview of Documentation Loan Market Association (LMA) and others (e.g. LSTA) Investment Grade & Leveraged Primary documentation The Documentation cycle Mandate & Term Sheet Types of syndicated facilities Mandate letters Confidentiality & NFR Letter Term Sheet Practicalities Role of Agent Role of MLA/Arranger Role of and rights of participating banks Building a business as a participant bank Case study: assessment of the merits of an invitation to participate Pricing a Syndicated Loan Sources of information Trade-offs between price, maturity and credit structure Assessing market appetites Underwriting and Distribution Strategies Sub underwriting Syndication Club Case study: delegates are split into groups and asked to work on an invitation to underwrite an investment grade transaction based on specific scenarios. Tasks include: Evaluation of the invitation Production & assessment of Comparables Producing and refining a Bank Universe Liquidity Analysis Assessment of the other factors which can influence the decision Presentation of the recommendation to Business & Credit Day 2 Roles & Responsibilities The role of the participating bank Why does a bank become a participant? What must a participant do – and not do? What does a participant need from the arrangers? Current market conditions for participants Responsibilities in a Syndication Unit Functions required in a syndication unit How to undertake the roles in a transaction Systems Market practice and sensitivities Syndicating & Closing a Syndicated Loan – the role of an MLA/Bookrunner Investor Materials – PIM, Due Diligence Reports, Bank Meeting Data Room Timetable Private vs Public Closing Allocation Free to Trade Secondary Loan Trading Development of the market Key drivers Main players Settlement Market practice Case Study: evaluating a secondary trading opportunity The Loan Agreement Detailed review of the LMA recommended forms The key concepts in syndicated loan documentation including pari passu provisions and trigger points / default Security Priority ranking Different types of security Clauses in security documentation Granting and perfecting collateral Asset-based transactions Day 3 Winning Mandates and Selling Down The Corporate Treasurer’s Perspective The issues and challenges from the borrower’s perspective How to win mandates and build client loyalty Techniques for managing bankers Specialist Syndication Markets Project & Infrastructure Finance Leverage Finance Real Estate Financial Institutions Emerging markets Bidding for the Mandate How to structure the syndicated deal Analysing the right price Bidding strategies Final Case Study: delegates will work in groups on a case study involving the assessment of an invitation to underwrite a structured financing. Delegates will use a summary term sheet to Evaluate alternative syndication strategies Conduct a Comparables Analysis, set up an Investor Universe, complete a Liquidity Analysis Yield calculation for brackets in a deal Cost and usefulness of underwriting Course summary and close