Global
Corporate Finance
In this module we review the key
decisions
-- investment, financing and risk management -- that contribute to
shareholder
value. Focusing on opportunities in today's global debt and equity
markets, we provide guidelines for corporate funding choices and the
value-added provided by investment bankers. Running through the key
computations and concepts of corporate
financing,
we discover the how a acquisition financing choices or other
restructuring can alter the value of a
company -- for better or
for
worse. The module highlights the growing use of hybrid and mezzanine
financing techniques in leveraged finance.
Structured Finance
This
module offers an introduction to the exciting world of
structured finance -- a $8+ trillion market. By their very nature,
these instruments are designed to meet the special-situation needs of
investors and issuers; hence they are ever-changing. Delegates will
learn investors' and issuers motivations, and the pricing and risk
aspects of the products. We'll illustrate the different classes of
structured finance products with many current examples.
Time
|
Topics
|
Resources
|
| Morning |
Global Corporate Finance: Choices for Clients
- Capital funding choices
for global corporations
- Computing
funding costs and the cost of capital
- Matching
corporate finance to funding choices
- Case study: Financing Photronics
- How funding choices relate to
shareholder value<>
- Seeking
the most effective capital structure
- Case study: The proposed recapitalization
of Oracle
- A
roadmap for capital structure choices in acquisition finance and
recapitalizations
Mezzanine Finance
- Leveraged
finance: why and how
- Mezzanine:
beyond debt and equity
- Assets
versus cash flows as support for leverage
- Second
lien financing
- Subordinated
vendor financing
- Pay-in-kind
(PIK) notes
- Warrant notes
- Example:
Woodstream. Who gets the warrants, and what are they
worth?
- Convertible notes and preferred
stock
- Case
study: Advising on the ISS financing
- Conclusion: exit strategies
|
Presentation
iif-giddy1.pdf
Case Studies
Financing
Photronics
Oracle
The
Leveraged Acquisition of ISS
Articles
Mezzanine Finance 1
&
Mezzanine
Finance 2
|
Afternoon
|
Structured
Finance: Introduction
- Motivation
and economics of structured finance
- Examples
of structured finance instruments in the global bond market
- Credit
risk transfer through securitization
- Getting an asset-backed deal
to market
- Credit enhancement:
how it works
- Case
study: Finance Company Bhd. Participants review
the process, structure and cash flows of this deal
- Key legal
prerequisites of ABS today
Credit-Linked Structured Finance
- Beyond
ABS: Collateralized
debt obligations and credit derivatives
- Synthetic
credit risk transfer
- Structured
products linked to loan markets and companies' credit perfomance
- Credit-linked
notes
- Example: Chase Leveraged Loan Participation
Note
Equity-Linked Instruments and Hybrid Securities
- Why
use equity-linked and hybrid instruments?
- Background:
equity derivatives
- Convertible
bonds and warrants
- Case
study: DBS PENS. In what way were these investments designed to
attract foreign investors?
- Capital-protected
index-linked notes -- and variants
- Case study: JP Morgan Equity-Index Linked Note
- Option-linked
products: equity bull and bear notes
- Case
study: RBC Bear ELNs
- Hedging and managing the risk
- Commodity-linked and currency-linked
products
- Hybrid bonds as a financing instrument
- Case study: US Bancorp Hybrid. Is
this debt or equity?
Review and Conclusion
|
Presentation
iif-giddy2.pdf
Case Studies
Finance
Co. Bhd
DBS
Pens
Equity
Index Note
Oil-Linked
Notes
US
Bancorp Hybrid
Article
Structured
Notes
|
About the Instructor
Dr. Ian
Giddy,
born in South Africa, has taught finance at NYU, Columbia, Wharton,
Chicago and
in over 40 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
North and South America, Europe, Asia, the Middle East and Africa. As a
banker and consultant he has been involved in the
growth of the structured finance market in the USA, Europe and Asia. 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.
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