The course will be taught around several major topics employing in-depth group work on case studies, financial analysis and deal documentation. The focus will be on identifying situations that call for nonstandard corporate finance solutions, and the design and pricing of the situation-specific financing instruments. Examples of such situations include capital financing, private equity and leveraged buyouts, recapitalizations, stress-induced financial restructuring, and arbitrage-driven hybrid debt funding.
equity-linked finance spans the
between debt and equity. Techniques include convertible
notes, preferred stock, index-linked securities and hybrid
capital notes. Companies seek the best of debt
and equity, while lenders
and investors often demand the security and priority of claims offered
by debt, while expecting some participation on the upside in exchange
for the risks they take. Structured
products refers to a range of investment instruments designed to
investors' or issuers' special needs or constraints.
is subordinated, unsecured debt including including warrant loans, and
corporations and banks a means of financing during circumstances when
ordinary techniques fall short. Leveraged
financing uses mezzanine debt, often
employed in M&A, management
buyouts and other forms of ownership transition, as well as corporate
The course explains why and when corporations
should issue, hybrid securities, structured
notes, mezzanine funding, leveraged
finance or other forms of tailored finance. In three
information-packed days of instruction
and application, we offer an economic cost-benefit analysis of
the techniques, an insight into the corporate finance and pricing
principles, the risks and how they can be managed, methods of cash-flow
modeling, and a roadmap for
among the alternative forms of these techniques that are employed in
today's capital market.
Who Will Benefit From This Course?
The course is of relevance to both potential originators and investors in hybrid and mezzanine instruments: commercial and investment bankers; corporate finance officers; securities analysts; investment professionals; corporate treasurers and other individuals whose professional future may be enhanced by an understanding of mezzanine finance and hybrid techniques. One goal for participants is to develop a check list or rapid overview of the key criteria in a structured finance deal, to consider when analyzing a proposal, so as to grasp the main strengths and risks of each structure after an initial analysis.
Participants will be provided with a package of materials useful to the structuring and analysis of specially tailored financing techniques, including pertinent articles, rating agency reports and sample documentation from actual deals done in Europe and elsewhere. The course will include case studies of actual financings, as well as hands-on exercises, and will give participants the opportunity to demonstrate their understanding of deals through presentations and discussions.
Key Issues to be Explored
Outline of Course
Ian Giddy has taught finance at NYU, Columbia, Wharton, Chicago and in 45+ countries worldwide for the past three decades. He was Director of International Fixed Income Research at Drexel Burnham Lambert from 1986 to 1989. The author of more than fifty articles on international finance, he has served at the International Monetary Fund and the U.S. Treasury and has been a consultant with numerous corporations and financial institutions in the U.S. and abroad. As a banker and consultant he has been involved in the growth of the structured and mezzanine markets in the USA, Europe and several developing countries. He is the author or co-author of The International Money Market, The Handbook of International Finance, Cases in International Finance, Global Financial Markets, Asset Securitization in Asia and The Hudson River Watertrail Guide. He and his wife are the founders of Cloudbridge, a nature reserve in Costa Rica.