Raising Finance in the Bond Market Course Agenda

Training will take place over two days at London Stock Exchange and will cover the modules listed below. The time allocated to, and level of detail covered in each module, will be adjusted to meet the requirements of attendees.

Sources of finance

  • Debt, Equity & Retained Earnings
  • Cost of equity and debt
  • Weighted Average Cost Of Capital (WACC)
  • Financial leverage
  • Purpose of funding
  • Market conditions  

Bonds

  • Methods of raising finance
  • Loans vs. Bonds
  • Issuance life cycle
  • International bond market
  • Key attributes
  • History
  • The corporate bond market in Europe
  • Bond types o Public or private?
  • MTNs
  • Fixed or floating?

Borrowers

  • Suitability for issuance 
  • Determinants of a successful issue  
  • Credit Ratings
  • Credit rating process

 Using Swaps

  • Interest rate swaps
  • Rationale for Liability Swaps  
  • Comparative advantage
  • Swaps and bonds

Investors & Investor Protection  

  • Institutional investors
  • Alternative (hedge funds) investors  
  • Retail investors
  • Events of default  
  • Debt ranking
  • Hybrid capital  
  • Covenants

Case Study

  • Practical case study

 Syndication

  • Selecting a lead manager  
  • Why syndicate?
  • Syndicate roles  
  • The ‘Pot’ System  
  • Fees

Pricing & Launch  

  • Awarding the mandate  
  • The Roadshow  
  • Bookbuilding  
  • Pricing
  • Launch
  • Stabilisation
  • Expenses

Bond Pricing Exercise

  • Practical exercise

Legal and Documentation

  • ‘Due Diligence’  
  • Prospectus or Offering Circular  
  • EEA Prospectus Directive
  • Other documents
  • Subscription Agreement
  • Agreement Among Managers
  • Base Prospectus & Final Terms
  • Trustee / Fiscal agent
  • Stock Exchange Listing
  • UKLA Listing Requirements 

 US Selling Restrictions  

  • Rule 144a  
  • Regulation S  
  • TEFRA C &  D

Distribution & Closing  

  • The Roadshow
  • Conflicts of Interest
  • Selling restrictions  
  • “Sounding Out”
  • Distribution & Allotment  
  • Closing Procedure
  • Ongoing requirements – EEA Transparency Directive

 Liability Management  

  • Bond buy-backs  
  • Public tender offers  
  • Exchange offers
  • Consent Solicitations