Advanced Capital Structure Modeling


This full-day advanced capital structure modeling seminar is a challenging session geared towards experienced investment banking analysts and associates. The goal of the session is to ensure that bankers are completely comfortable building complex debt concepts into a financial model. Assignments, handouts and examples will be used throughout the day.


This course builds on "Capital Structure Modeling", so participants may want to complete that course prior to taking the "Advanced Capital Structure" session.


8 hours

Learning Topics

Key Debt Concepts

  • Discuss key features and design considerations for complex pieces of debt
  • Learn to model a convertible bond
  • Incorporate Mezzanine debt with non-cash PIK interest that toggles based on the company’s leverage
  • Create a bridge loan for an M&A situation
  • Build in a flexible revolving credit facility with a cash sweep
  • Incorporate a minimum cash balance so that the cash account never drops to zero
  • Model various tranches of Senior Notes and Term Loans with various repayment mechanisms
  • Properly incorporate all the capital structure elements into the financial statements and balance the balance sheet

Model Circularity

  • Review circularity within financial models and learn to create a “circuit breaker” to fix a crashed model
  • Learn why models are often circular, and which pieces of debt contribute to the model’s circularity
  • Use the circular reference toolbar to identify inappropriate circular references
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