Syndicated Loans

The renewed interest in Syndicated Loans training looks set to continue, especially while lending remains constrained. Syndicated lending is attractive due to the reduced exposure to risks that comes as being part of a syndicate of lenders. The course has been newly revised to take into consideration the lending challenges created by the global credit crisis.

Course Highlights

Interesting presenters made it easy to concentrate throughout the course. Not to rushed meaning plenty of time for discussion and interaction when required

A.R., British American Tobacco Ltd

Attend this intensive three-day training course and learn how to:

Price accurately and deal successfully
Assess various financial covenants and understand for which type of deal each is most effective
Latest developments including the LMA, growth of the secondary market and links between the LMA and the primary and secondary markets
Latest legal issues for syndicated loans
Win the mandate: all you need to know

For details of the course trainer, please download the course brochure

Booking Information

Dates	Prices	Book This Course	Discount
01 - 03 Sep 2010	£ 2099		-
04 - 06 Apr 2011	£ 2099		-

Course Programme

Interesting presenters made it easy to concentrate throughout the course. Not to rushed meaning plenty of time for discussion and interaction when required

A.R., British American Tobacco Ltd

Interesting presenters made it easy to concentrate throughout the course.

A.R., British American Tobacco Ltd

The course leader was a great speaker and very knowledgeable, as were the other guest speakers

T.T., HSBC Investment Bank

Overview of syndicated lending

Assessing the new developments and state of the market, especially the major refinancing due to the market
The role of "Forward Start" structures
Consideration of the links between Loan Portfolio Management and the primary and secondary markets
Evaluating the potential of the secondary market and the Loan Market Association

Winning the mandate: organisation of the syndicated loan process

Examining the role of the:

arranger
underwriter
lead manager

Timetable for syndication of loan
Risks involved in deals:

fully underwritten
best effort
allocation of participation and resulting issues

Agent bank

the role of the agent
mechanics of administration
the procedure when difficulties arise

Pricing considerations to achieve a successful syndicate

How to assess a borrower's credit
Identifying and analysing comparative deals
Assessing the role of maturity in pricing
Other factors which can effect price
Examining the role of ancillary business when pricing, within the context of arranging banks

Evaluating margins and their significance

Function of the margin
Analysis of the ratchet margin structure

Creating facilities which match client needs

The borrower and assessing the individual criteria
Market liquidity and appetite
What are the facilities used for?

working capital
mergers and acquisitions
refinancing existing debt

Termination date and its impact on the loan structure/pricing
Understanding types of credit facility

term
revolving credit
stand-by
hybrid transactions
multi-currency

Discus how the interest rate basis is fixed
Libor / Euribor

prime or other basis

Withholding tax and its importance
Successful repayment of money

amortisation schedule
bullet repayment

Case Study
Benefit by participating in this intensive case study where you will, working in 'syndication teams', structure and price a deal taking all newly learnt skills into account

Assessing the legal considerations

Examining the key concepts
Consideration of covenants and their purpose
Assessment of trigger points in an agreement
The agent's liability

FINANCIAL COVENANTS AND MARGIN PROVISION

Understanding financial covenants: the bank's safeguard against a borrower's change in credit rating

Gearing levels
Interest cover
Total indebtedness
Examining which covenants are appropriate for different types of borrowing

Devising fee structure and its proportionment

Calculating the fees payable on a deal:

underwriters fee
sub-underwriters fee
management fee

Different loan types and examining the range of pricing

Assessing structure: reasons and key credit factors for this range:

corporate loan
loan as a bridging facility
project deals
MBO's

Current status of "Forward Start" agreements

THE ROLE OF PARTICIPATING BANKS

How to win participating banks and their importance

Targeting the right banks
Assessment of risk with regard to participating banks

The borrower's approach to syndicated lending

Criteria for selecting:

advisors
arrangers
agent bank
participating banks

Responsibilities for the Information Memorandum
Attitude to transferability

Links between Loan Portfolio Management and the primary and secondary markets

How Loan Portfolio Managers relate to the syndication teams in terms of their roles in:

diversification of risk
managing credit lines
the use of credit derivatives

Implications for syndication teams of portfolio management decisions

The growth of the secondary market, the emergence of the LMA and the impact on the primary market

Secondary market and the Loan Market Association

Assessing current activity:

recent growth in the market
assessment of effect of growth on banks of lower credit rating

Aims of the Loan Market Association

common language of transferability for secondary trading and its implications
standardisation of the documentation for primary deals and its implications

Impact of the secondary market on the primary market

Methods of transfer
Key legal issues
Confidentiality agreement between bank and borrower and its effects in secondary selling of the loan
Negotiating the transferability clause in primary documentation
Hidden blocks to transferability in the primary loan agreement
Impact of "Forward Start" agreements