PREFACE INTRODUCTION A Brief History of Structured Finance (The Origins) Defining Structured Finance (The Terms) PART 1: LEVERAGED BUYOUT (LBO) Chapter 1 What is an LBO? 1.1 The Main Features of an LBO 1.1.1 Definition 1.1.2 Debt Sizing 1.1.3 Various Types of LBOs 1.

2 A Three-Step Leverage 1.2.1 Financial Leverage 1.2.2 Tax Leverage 1.2.2.1 Little to No Dividend Tax 1.

2.2.2.Tax Groups and Interest Deductibility 1.2.2.3 Alternatively, the Merger or the Debt Push Down 1.2.

3 Managerial Leverage 1.2.3.1 LBOs by Investment Firms 1.2.3.2 The Acquisition of a SME by an Individual Buyer 1.2.

3.3 The Build-up Case Study 1: The Harley-Davidson LBO (1981-1986) Chapter 2 The Different Stakeholders 2.1 The Target Company 2.1.1 Stable and Recurring Cash Flow 2.1.2 Possibility of Improving Operating Processes 2.1.

3 Growth Opportunities 2.1.3.1 Organic Growth 2.1.3.2 External Growth 2.1.

4 Low Level of Net Long-term Debt 2.1.5 Low Working Capital Requirement 2.1.6 Some Assets can be Collateralized (ideally) 2.1.7 No Dirty Little Secrets 2.1.

8 People Matter 2.1.8.1 A Top-Notch Management Team 2.1.8.2 Change of Culture 2.2 Buyers 2.

2.1 Private Equity Firms 2.2.1.1 Private Equity Sponsors 2.2.1.2 The Origins of Leveraged Buyouts 2.

2.1.3 LBO Firms vs. LBO Funds 2.2.1.4 Profit Sharing between LPs and LBO Firms 2.2.

1.5 Fund''s Lifetime 2.2.1.6 Performance Targets 2.2.2 Individual Buyers 2.3 Lenders 2.

3.1 Basic Concepts 2.3.2.1 Sizing 2.3.2.2 Debt Structure 2.

3.2 Term Loans 2.3.2.1 How Does it Work? 2.3.2.2 Covenants 2.

3.2.3 Events of Default 2.3.2.4 Cove-lite Structures 2.3.2.

5 Banking Pools 2.3.2.6 Non-bank Investors 2.3.2.7 Other Credit Facilities 2.3.

3 Subordinated Debt 2.3.3.1 Second Lien 2.3.3.2 Mezzanine Debt 2.3.

3.3 High-yield Bonds 2.3.4 Unitranche Debt 2.3.4.1 What is it? 2.3.

4.2 Bifurcated Unitranche Case Study 2: Michael Milken and the Birth of the High Yield Bond Market Case Study 3: Malcolm Glazer and the Manchester United LBO Chapter 3 The LBO Process 3.1 The Sale Process 3.1.1 Preliminary Analysis 3.1.2 Valuation 3.1.

2.1 Comparative Method 3.1.2.2 Intrinsic Method 3.1.2.3 Determining the Offer Price 3.

1.3 Letter of Intent 3.1.4 Due Diligence 3.1.5 Structuring and Closing 3.1.6 After the Acquisition 3.

1.6.1 Private Equity Firms 3.1.6.2 Individual Buyers 3.2 Exit Strategies 3.2.

1 Initial Public Offering 3.2.2 Sale 3.2.2.1 To a Company 3.2.2.

2 To Another Private Equity Firm 3.2.3 Dividend Recapitalization 3.2.3.1 How does it Work? 3.2.3.

2 Constraints 3.3 LBO and Private Equity 3.3.1 Focus on Venture Capital and Growth Capital 3.3.1.1 Venture Capital 3.3.

1.2 Venture Capital Firms 3.3.1.3 Several Rounds 3.3.1.4 History of Venture Capital 3.

3.1.5 Growth Capital 3.3.1.6 Growth Capital vs. Venture Capital 3.3.

2 LBO Compared with Venture Capital and Growth Capital Case Study 4: Hilton Hotels LBO, the Most Profitable Private Equity Deal Ever Summary Leveraged Buyouts: What have we Learnt? PART 2: PROJECT FINANCE Chapter 4 The ABC of Project Finance 4.1 Definition 4.1.1 The Purpose of Project Finance 4.1.2 Financing the Construction of Infrastructure with Non-recourse Debt 4.2 Why Choose a Project Finance Structure 4.2.

1 Two Different Options to Finance Infrastructure Assets 4.2.1.1 Corporate Financing 4.2.1.2 Project Financing 4.2.

2 Advantages of the Project Finance Option 4.2.2.1 Isolating Risks 4.2.2.2 Optimizing Leverage 4.2.

2.3 Extending Debt Maturity 4.2.2.4 Ideal Solution for Consortiums 4.2.2.5 Ideal Solution for Financial Sponsors 4.

2.2.6 Only Solution for Small or Medium Size Sponsors 4.3 Constraints of the Project Finance Structure 4.4 How to Choose Between Corporate and Project Financing Case Study 5: The Construction of the Eiffel Tower Chapter 5 The Main Parties to Project Financing 5.1 Different Types of Projects 5.1.1 Projects with Long-term Purchase Contracts 5.

1.1.1 How Does it Work? 5.1.1.2 Financing a Project Benefiting from a Long-term Purchase Agreement 5.1.2 Projects with Traffic or Merchant Risk 5.

1.2.1.Definition 5.1.2.2.A Higher Level of Risk than Projects Benefiting from Offtake Agreements 5.

1.2.3 Subsidies 5.1.2.4 Projects Partly Exposed to Merchant Risk 5.1.3 Public-Private Partnerships (PPP) 5.

1.3.1 Concessions: a Historical Approach 5.1.3.2 PPPs: from the United Kingdom to the Rest of the World 5.1.3.

3 Financing PPPs 5.1.3.4 Legal Forms of PPPs 5.2 Sponsors 5.2.1 Industrial Sponsors 5.2.

2 Financial Sponsors 5.2.2.1 Definition 5.2.2.2 A Growing Competition between Financial Sponsors 5.2.

2.3 Financial and Industrial Sponsors Work Together 5.2.3 Greenfield and Brownfield investments 5.2.4 Stock Exchange Listing 5.2.4.

1 Listing of Infrastructure Companies 5.2.4.2 Listing of Infrastructure Funds 5.2.4.3 Yieldcos 5.2.

5 Infrastructure-like Assets 5.2.5.1 Definition 5.2.5.2 Financing of Infra-like Assets 5.3 Lenders 5.

3.1 Banks 5.3.1.1 Leading Banks in Project Finance 5.3.1.2 What Types of Loans Do They Offer? 5.

3.1.3 Junior Loans 5.3.2 Infrastructure Debt Funds 5.3.2.1 New Players in the Infrastructure Space 5.

3.2.2 Regulatory Background 5.3.2.3 Who Are these Funds? 5.3.3 Project Bonds 5.

3.4 Development Finance Institutions 5.3.4.1 Definition 5.3.4.2 Multilateral Development Banks 5.

3.4.3 MDBs in Project Finance 5.3.4.4 Preferred Creditor Status 5.3.4.

5 A/B Loans 5.3.5 Export Credit Agencies (ECA) 5.3.5.1 Definition 5.3.5.

2 Rules Applicable to ECAs 5.3.5.3 Example 5.3.5.4 Advantages of ECAs 5.3.

5.5 Structuring Options 5.4 The Role of Public Authorities 5.4.1 Framework 5.4.2 Public Tenders Case Study 6: The Near Bankruptcy of Disneyland Paris Chapter 6 Project Finance Structuring 6.1 Preliminary Analysis of the Project 6.

1.1 Construction Risk 6.1.2 Resource Risk 6.1.3 Credit Risk 6.1.4 Market Risk 6.

1.5 Rate Risk 6.1.6 Foreign Exchange Rate Risk 6.1.7 Operational Risk 6.1.8 Technological Risk 6.

1.9 Political Risk 6.1.10 Environmental Risk 6.1.11 Force Majeure and Other Risks 6.1.11.

1 Force Majeure 6.2.11.2 Other Risks 6.2 Project Finance Legal Structure 6.2.1 Establishment of the Special Purpose Vehicle (SPV) 6.2.

1.1 Characteristics of the Project Company 6.2.1.2 Employees 6.2.2 Loan agreement 6.2.

2.1 Main Features of a Project Finance Loan 6.2.2.2 Reserve Accounts 6.2.2.3 Debt Service Coverage Ratio (DSCR) 6.

2.2.4 Loan Life Cover Ratio (LLCR) 6.2.2.5 Other Covenants 6.2.2.

6 Events of Default 6.2.2.7 Junior Loan 6.2.3 The Security Package 6.2.3.

1 Description of the Security Package 6.2.3.2 Analysis of the Security Package 6.2.4 Other Financial Documents 6.2.4.

1 Intercreditor Agreement 6.2.4.2 VAT Facility 6.2.5 Project Documents 6.2.5.

1 Construction (or EPC) Contract 6.2.5.2 Operation and Maintenance Contract 6.2.5.3 Offtake Agreements (and other Contracts through which an SPV Generates Revenues) 6.2.

5.4 Lease Agreement 6.2.5.5 Agreement(s) with the Host Country 6.3 Financial Structure 6.3.1 The Financial Model 6.

3.1.1 Building a Financial Model 6.3.1.2 Identifying Operating Cash Flow 6.3.1.

2 Role of the Financial Advisor 6.3.2 Debt Sizing 6.3.2.1 How to Determine the Total Debt Amount 6.3.2.

2 Debt Service Coverage Ratio (DSCR) 6.3.2.3 Is There an Ideal Debt-to-Equity Ratio? 6.3.2.4 Timing of a Sponsor''s Equity Investment 6.3.

3 Waterfall 6.3.3.1 Debt Repayment and Dividend Distribution 6.3.3.2 Is There a Risk of Conflict of Interest? Summary Project Finance: What have we learnt? PART 3: ASSET FINANCE Chapter 7 Definition of Asset Finance 7.1 The Scope of Asset Finance 7.

1.1 What is an Asset? 7.1.2 Three Types of Structures 7.2 How to Finance Assets 7.2.1 Mortgage Loans 7.2.

1.1 Definition 7.2.1.2 In Case of Default 7.2.1.3 Debt Sizing 7.

2.1.4 Maturity 7.2.2 Finance Lease 7.2.2.1 Definition 7.

2.2.2 Use in Asset Finance 7.2.2.3 Finance Lease Structure 7.2.2.

4 Tax Lease 7.2.2.5 Tax Lease Industry 7.2.2.6 Tax Leases Today 7.2.

2.7 Tonnage Tax 7.2.3 Operating Lease 7.2.3.1 Definition 7.2.

3.2 Clients Need Flexibility 7.2.3.3 A Few Words on Lessors 7.2.3.4 Lessors'' Financing Strategies 7.

2.3.5 JOLCOs 7.2.4 How the Three Options Compare to Each Other Case Study 7: Richard Branson and the Beginnings of Virgin Atlantic Chapter 8 The Stakeholders 8.1 Clients 8.1.1 Asset Users 8.

1.1.1.Who a.