Feichang Chen
This hands-on course focuses on the skills required to build and incorporate a complex capital structure into a financial model.
Participants recapitalize a company’s balance sheet and then forecast specific pieces of debt and equity so that the model can be used for credit purposes or as a Leveraged Buyout (“LBO”) model.
Skills / Knowledge
- Recapitalize a company's balance sheet
- Properly incorporate Senior Term Debt
- Create a robust bank operating line (or revolving credit facility) with a cash sweep
- Incorporate variable interest rates based on pricing grids
- Calculate a stand-by fee on the undrawn portion of the bank operating line
- Utilize a margining formula to monitor the size of a company's bank operating line
- Incorporate Mezzanine Debt
- Build a provision for non-cash Payment in Kind (PIK) interest
- Create a well-designed shareholders' equity schedule
- Properly forecast the company's balance sheet
- Learn to create a "circular reference breaker" to rid a model of undesirable error messages if the model crashes
- Understand and incorporate operating and debt ratios Include ratios with tightening covenants
Issued on
May 20, 2022
Expires on
Does not expire