Syndicated Lending Techniques

Course Description This intensive 3-day Masterclass uses practical case studies and current class exercises to maximize your understanding of the markets and equip you with hands-on experience of the workings of the syndicated loans market. You will learn how to use the markets to your advantage by understanding how to utilize the size, speed and flexibility offered within the syndications arena. Tap into the unique features of the syndicated loan market to maximize the potential for your customers as you help them raise finance from the capital markets. Summary of Course Content: • Thorough understanding of the historic and current syndicated loans market • Term Sheet and Mandate Letter analysis from the Syndications perspective • Developing pricing mechanisms including evaluation of pricing via alternative instruments • Examination of distribution methodology in developing a syndicate • How to build a Syndications Team and how to interact with Participants • Understanding the mechanics and timetable of the Secondary Loans Market Who should attend: • Syndication teams • Transaction management team members • Client relationship managers • Secondary market team members • Credit officers • Members of borrower treasury teams • Originators in debt capital markets • Project/structured finance managers • Corporate treasurers • Senior support officers e.g. senior agency team members • Solicitors/lawyers How delegates will benefit from this course: • Utilise evaluation techniques to position the syndicated loan market in debt capital markets • Identify the importance of syndicated loans to your clients • Explore bidding alternatives in preparing the mandate • Dissect a term sheet from a borrower' s perspective • Review market-clearing pricing trends • Unravel the latest legal/documentation issues for syndicated loans • Develop a syndicated loan transaction strategy and present a personalised syndication analysis • Mitigate syndication risks Methodology The course is a combination of lectures, current market examples of good practice and case studies worked in groups utilising role playing, group discussion and teamwork to reflect real-life syndication experience.
Day 1 Overview of Market Statistics, Definitions and 'the players' covering: Key features of the syndicated loan product Definitions and key market terms Statistical Analysis of current market trends Analysis of global markets (by volumes, currencies, tenor and investors) Preparing a Term Sheet Identifying the crucial features Meeting the borrower’s funding needs Pricing Considerations How to structure the transaction Documentation Strategy around Term Sheet presentation Key Syndication Terms (Including Market Flex) This session will also touch on the changes in capital adequacy requirements (Basel Ill) and the growing importance of ratings for the loan market. Case study Evaluating a term sheet. Delegates will be asked to review a set of term sheets provided as a result of a Borrower’s RFP (Request for Proposal). Group discussion will be used to evaluate the best option and present the logic behind the decision to ‘award the Mandate’. Syndication Process and Timetable Analysis of the phases of Syndication Definition of the roles of the Players Review of a Syndications Timetable Day 2 Pricing a Syndicated Transaction Macroeconomic factors impacting price Pricing and the Credit liquidity cycle Critical components of market pricing Sources of information: where you go for pricing comparisons Bidding and Syndication Strategies Alternative bidding strategies Preparing a Liquidity analysis Fee splits and yield calculations Underwritings, Best Efforts and Club deals Delegate exercise: Return calculations Case Study Developing and articulating a credible syndication strategy. Delegates are given a scenario of a transaction where they will be required to produce two deliverables: A presentation to the borrower of the proposed syndication strategy A presentation to the internal authorising committee (often a credit and/or portfolio committee) of a bank seeking to lead the deal. Delegates will be provided with all the necessary data to undertake this task which will build on the 2 previous sessions of the course. Presentations from Case Study Delegates will deliver their findings of the previous session case study. Each presentation will be evaluated and critiqued. Day 3 Overview of the Secondary Loans Market Why use the Secondary Loans Market? Procedures for Buy/Sell in the Secondary Market acceptabletimetable for a trade Role of a Participating Bank Why be a Participant Bank? Obligations of the Arrangers Obligations of the Participants Arranger/Participant interaction Setting Up a Syndications Desk Roles with a Syndications Team Job of the Agency function Interaction between Syndications and the Bank External and Internal Players and Interface Evaluating performance Case Study Pitching for a Mandate. Delegates will be asked to work in groups to respond to a Request For Proposal (RFP) from a major international borrower. In addition to presenting the proposal, the delegates will be required to address a number of other critical marketing points which have been covered earlier in this course. Each group will determine their underwriting commitment and syndication strategy based on guidelines provided to each group. They will be asked to present their proposal to the Borrower (role play) and to explain how their institution will execute the transaction. Making the Pitch Delegates, in their groups, will make the pitch and the most attractive proposal will be awarded the mandate Course Summary and Close