Course Overview

Structuring Commercial Loans II is designed to teach financial professionals the principles behind structuring seasonal, working capital, and term debt. In addition to the topic covered in Structuring Commercial Loans I, this program adds a complex financing transaction in which the holding company’s management group is purchasing the company. This course consists of the following aspects of structuring commercial loans: examining the role of capital structure in structuring the transaction; analyzing and structuring transactions using both permanent working capital and term loans; analyzing and structuring an acquisition transaction; and analyzing a bridge loan facility.

     

Duration

7.5 hours

Delivery

Instructor-Led Online

Program Level

Intermediate

 

Prerequisites

Participants are expected to have a thorough knowledge of financial accounting, traditional financial statement analysis, and cash flow analysis.

 

 

Who Will Benefit?

Individuals who manage relationships with commercial or corporate clients.

   

Learning Objectives

Upon completion of this course, participants will be able to:

• Analyze the business needs that give rise to long-term financing.
• Develop the loan and capital structures consistent with the assets being financed.
• Design and implement appropriate covenant structures to ensure the best chance of servicing and repayment of debt.

Methodology:

Through a mix of discussion, small group activities, and case studies, participants are better prepared to apply the content learned when they return to their jobs. The following cases are described in Structuring Commercial Loans II:

• The president of Martin Metals, a steel services company in Ohio with sales of $10 million, has requested a $1.6-million seven year term loan, repayable in equal annual installments, and an $850,000 line of credit that would be used for working capital purposes. 
• Bridges Health Services Group, Inc. is a Georgia corporation providing housekeeping, laundry, linen, facility maintenance, and food services to the health care industry, including nursing homes, retirement complexes, rehabilitation centers, and hospitals throughout the South. In February, the management of Bridges entered into an agreement with Bridges’ shareholders to purchase the company for $41.2 million.