Advanced Capital Structure Modeling


Learn to build multiple pieces of complex debt into a financial model

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.




1 day

Learning Topics

Key Debt Concepts

  • Discuss some 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 in the model to be used in an M&A situation
  • Build in a flexible revolving credit facility with a cash sweep
  • Learn to 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 within a model
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