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Advanced Covenant Analysis (FLT-ACA)


Description

Advanced Covenant Analysis is FLT’s most comprehensive course for experienced credit professionals, building on the LFCT foundations and going significantly deeper into three critical areas.


The stressed and distressed module covers the full spectrum of liability management mechanics. The capacity calculations module takes participants through every component with dedicated case studies. The founding principles module reveals the original design logic behind each covenant.

Starting Date: CPD Accredited: No

Content
  • 1. Covenant Analysis in Stressed and Distressed Analysis
  • Introduction to Covenant Analysis in Stressed and Distressed Scenarios
  • Why Analyze These Terms
  • Distressed Covenant Analysis: How it Works
  • Preliminary Considerations
  • Preliminary Analysis
  • Liability Management Options
  • Leveraging the Asset Sales Covenant
  • Collateral Release
  • Subordination
  • Determining Debt Capacity
  • Non-Guarantor Debt Incurrence
  • Calculating Secured Debt Capacity: In Practice
  • Dilution and Determining Liens and Priming Capacity
  • Calculating Covenant Capacity Step-by-Step
  • Up-Tiering
  • Unrestricted Subsidiaries and Dropdowns
  • When is the Restricted Payments covenant relevant?
  • Dropdowns
  • Payments (For Consent)
  • Amendments
  • Defensive Maneuvers
  • Distressed Covenant Analysis Key Issues Checklist
  • Q&A: Does the borrower or the sponsor own the borrower's IP?
  • Q&A: The current state of liability management
  • Q&A: Market Trends
  • Q&A: Are borrowers seeking restructuring advice earlier than before?
  • Q&A: What tools do sponsors use to extract value and gain an edge over lenders?
  • Q&A: Are European sponsors extracting dividends just before bankruptcy?
  • Q&A: How do restructurings differ for unitranche, HY bond, and BSL lenders?
  • Q&A: Which jurisdictions are most difficult for restructuring?
  • Q&A: How can companies and sponsors buy time without involving lenders?
  • Q&A: Which assets do sponsors use for RP, Permitted Investments, Asset Sales?
  • Q&A: Are auditors acting before sponsors, e.g., 24 months before the audit?
  • Q&A: Are mark-downs on IP and intangibles triggering balance sheet insolvency?
  • Q&A: Are there any sectors you are seeing a bit more often than normally?
  • Q&A: Concluding remarks and tips for lenders
  • Covenant Analysis in Stressed and Distressed Scenarios Quiz
  • 2. Calculating Covenant Capacity
  • Introduction to Calculating Covenant Capacity
  • Why Calculate Covenant Capacity?
  • Covenant Calculations: Disclaimers
  • Calculating Covenant Capacity Step-by-Step (clone)
  • Which calculation are you conducting?
  • Preparing for the Analysis
  • Identifying Accounting Standards
  • Case Study: Identifying Accounting Standards
  • Clarifying Consolidation
  • Monkey Business Q2 & Covenant Calculations: Which line items?
  • Financial Calculations Covenant
  • Pick a point in time
  • Case Study: Pick a Point in Time
  • Very Nice Net Income
  • Case Study: Very Nice Net Income
  • The Alchemy of EBITDA
  • Case Study: The Alchemy of EBITDA
  • Amazing Disappearing Debt
  • Case Study: Amazing Disappearing Debt
  • Selective Secured Debt and Case Study
  • Interesting Interest Expense
  • Case Study: Interesting Interest Expense
  • Fabulous Fixed Charges and Case Study
  • Ratio Calculation Radness
  • Case Study: Ratio Calculation Radness
  • Q&A: Have borrowers ever disclosed the value of the collateral?
  • Q&A: Can lenders tell if a borrower will pay a dividend before it happens?
  • Covenant Capacity Calculations Quiz
  • 3. Mastering Covenant Principles
  • Introduction to Mastering Covenant Principles
  • Why Master Covenant Principles?
  • What Were the Founding Principles?
  • Achieving Balance
  • The Benefits of Understanding Founding Principles
  • Mastering Covenant Principles: How it Works
  • Analyzing the Structure Chart
  • Which Provisions Will We Discuss?
  • Founding Principles of the Margin Ratchets
  • Founding Principles of HYB Redemption Provisions
  • Founding Principles of the Debt Covenant
  • Founding Principles of the Restricted Payments Covenant
  • Founding Principles of the Asset Sales Covenant
  • Founding Principles of the Change of Control Covenant
  • Mastering Covenant Principles - Quiz
  • 4. Intercreditor Arrangements & SSRCFs (Europe) with Crowell & Moring LLP
  • Introduction to Intercreditor Arrangements & SSRCFs (Europe)
  • Typical Structure
  • New Structures
  • Intercreditor Agreements: Key Points
  • Why it is important to read covenants
  • 5. Advanced Covenant Analysis Final Exam
  • Final Exam
Completion rules
  • You must complete the test "Final Exam"
  • Leads to a certificate with a duration: Forever
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