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Advanced Financial Analysis Series - LBO Modeling & Debt Sweep Enhancements [Complete] Event Code: 170310W
Date 10-Mar-2017
Time 08:45 a.m. - 5:00 p.m.
Venue HKSFA Office, 14/F, BOC Group Life Assurance Tower, 136 Des Voeux Road Central, Hong Kong
Speaker(s) Mr. Hamilton Lin, CFA
Wall St. Training
Fee HKSFA Member(s) at HK$2,500.0/person
CFA Candidate(s) at HK$4,000.0/person
Guest(s) and Non-member(s) at HK$4,000.0/person
This seminar is qualified for 6.5 CPT hour(s), 6.5 CE hour(s), 6.5 RBV CPD hour(s)
  • Special Discount: 10% off for those who register for two (or more) workshops.
  • Only Visa and Master Card are accepted for online payment.
  • The fee includes course materials.
  • Classrooms are not equipped with computers, participants WILL HAVE to bring their own laptops.  Please bring Excel for PC installed (any version).  Macs will not be as effective as shortcut keys are different.
  • Please make sure your laptop has a working USB port to copy files at the beginning of class.

Event Details
HKSFA is proud to present our “Advanced Financial Analysis Series" held in conjunction with Wall St. Training. The Advanced Financial Analysis Series will provide practical, career-enhancing programs related to fundamental analysis, valuation and financial modeling. This series of hands-on workshops will consist of the following full-day programs:
·  Advanced Financial Modeling : Core Model 8th March 2017 (Wed)
·  Segment Build-up and Sensitivity Modeling 9th March 2017 (Thurs)
·  LBO Modeling & Debt Sweep Enhancements 10th March 2017 (Fri)

The goal of these programs is to improve and elevate the skill sets of the financial analyst and the investment professional. Heavy emphasis is placed on being as effective and efficient as possible with Excel. If you are interested in improving your financial modeling and valuation skills, or are in the midst of a career transition, these courses are for you!
 Wall St. Training ( provides professional financial training solutions to Wall Street through hands-on classroom training and customized corporate training programs for financial analysis which take a hands-on, interactive, practical, non-theoretical approach. The instructor, Wall St. Training’s President and Founder, Hamilton Lin, CFA, has trained numerous major financial services firms including Bank of America/Merrill Lynch, Capital Group, CLSA, Credit Suisse, Deutsche Bank, Fidelity, GE Business Development & Private Equity, Goldman Sachs, Greenhill, ING, JPMorgan, Lazard, Morgan Stanley, Oppenheimer, TD Securities, TIAA-CREF, TPG, UOB, Wells Fargo, World Bank – IFC and many others. Wall St. Training also provides financial modeling training courses to most of the largest CFA Institute societies around the world. 

Highlights of the Workshop:

Boadly speaking, debt and equity each represent half of corporate finance and financing options. This course is focused on quantifying changes to capital structure from the debt perspective and enhancing Debt Sweep in our core financial models. Each tranche of debt has different cash flow sweeps and financial covenant requirements that must be translated into Excel from the legal documents.

We start off with a brief introduction of the most extreme debt financing transaction – a typical LBO and then model out detailed Cash Flow Statement estimates and robust Debt Sweep. Specific debt related compoents that we will do a deeper dive include elements such as available cash flow, debt sweep, credit ratios and enhanced excess cash flow sweeps based on financial covenants from credit agreements. We will compare and contrast debt types up and down the capital stack and their respective impact on the model and cash flow, such as the function of the Revolver, various  Term Loan amortizations and excess cash flow sweep calcluations as well as integrating and sweeping additional new and existing debt tranches.

Learning Objectives:

•   Brief introduction to LBOs: overview, rationale, ideal candidate and drivers of value

•   Incorporate fundamental drivers including Sources & Uses, Pro Forma projections, selected Balance Sheet items, cash flow, detailed debt sweep, credit ratios

Learning Goals:
Drivers of value from a financial point of view and changes in capital structure:

•   Comparison to share repurchases and the lack of value creation

•   Counter argument of cost of capital, funding costs and opportunity costs arbitrage

•   Counter-counter argument of weighted average cost of capital changes

•   Participants might be thoroughly confused at first, but will finally understand every aspect of the capital structure value proposition by the time we are done!


Build an expanded Sources and Uses of Funds analysis that dictates LBO value:

•   Sources of Funds: rollover equity, detailed debt structure & maximizing debt capacity

•   Uses of Funds: ability to toggle refinancing of existing debt, excess cash usage, proper treatment of debt financing fees, tender costs and transaction costs


Construct a Pro Forma, post-LBO Income Statement projection model:

•   Calculate new, Pro Forma interest expense and amortization of debt financing fees

•   Calculate cash flow available to firm through expanded debt sweep

•   Constructed Cash Flow Statement, including CFO, CFI and CFF


Expanded Debt Sweep schedule to flow through various debt items

•   Incorporate Term Loan mandatory amortization and dynamic pre-payment

•   Build out various types of Term Loan excess cash flow sweep requirements

•   Integrate and sweep through additional new and existing debt tranches


Construct Equity IRR analysis:

•   Identify true source of returns, from building of equity to time value of money

•   Discussion on why highly levered transactions must exit within 3 to 5 years

•   Analyze & partially quantify the trend towards dividends to financial sponsor as opposed to debt paydown

•   Analyze credit and leverage statistics and equity sources that drive the LBO model



*Rating - Advanced
Highly focused technical presentations of interest to participants with a high level of technical knowledge in the subject area.)

Click here to download the event flyer for further details.