Resources on Managing Debt

These presentations may be downloaded with our compliments:

Common Debt Mistakes.pptx and its pdf version, which covers these subjects:

  • — List of common debt mistakes
  • — Understanding your debt agreements
  • — Preparing for your debt negotiations
  • — Negotiating your debt
  • — Post-closing issues
  • — Underestimating default risk and the consequences
  • — Developing a debt compliance process

Understanding_Debt_Agreements.pptx and its pdf version, which covers these subjects:

  • — Understanding default risk
  • — How debt agreements are structured
  • — How to read a debt agreement
  • — Covenants vs. covenant requirements
  • — Covenant minefields
  • — Classifying covenants by lender objective
  • — Managing covenants by lender objective
  • — Evaluating covenant risk by cure period
  • — Evaluating covenant risk by covenant type.

Negotiating_Debt_Agreements.pptx and its pdf version, which covers these subjects:

  • — Setting up the negotiations
  • — Understanding default risk
  • — Minimizing event default risk
  • — Minimizing cash flow default risk
  • — Minimizing technical default risk
  • — How to write covenants that minimize default risk
  • — Understanding knowledge, notice and cure periods
  • — Managing post-closing negotiations
  • — Summary of recommendations
  • — Investment grade negotiating objectives
  • — Speculative grade negotiating objectives.

DCS_Deal_Document_Template.docx, which covers these subjects in template form for you to use in negotiating your debt agreements:

  • — Instructions
  • — Documenting any changes from the originally accepted term sheet.
  • — Comparison of the new debt’s conditions in the order of their relative importance against comparable conditions in your refinanced and existing debt.
  • — Listing of the closing conditions, closing reps and warranties, continuing reps and warranties, post-closing covenants, and a scheduling showing the closing cash flows
  • — Analysis of your financial ratios and P&L payments against cash flow scenarios and ratio stress testing.