Masterclass II

Structured and Mezzanine Finance
Friday, 31 March 2006

Registration for the masterclass will be at 08:30; the masterclass will commence at 09:00 and conclude
at 16:00. Morning and afternoon refreshments, as well as lunch, are scheduled into the day’s proceedings.

The focus will be on identifying situations that call for nonstandard corporate finance solutions. This
workshop explains why and when corporations and financial institutions should issue mezzanine funding,
asset backed securities, leveraged finance or other forms of structured finance.

Objectives:

• Offer an economic cost-benefit analysis of the techniques
• An insight into the legal, accounting tax and regulatory principles
• The risks and how they can be managed
• Methods of cash flow modelling

Key issues to be explored:

• Credit Linked Finance – what is structured finance? Why and when should companies consider the use of
  structured financing techniques? What are the key legal and credit issues surrounding asset-baked
  financing, and how can they be satisfied? How and when can structured notes provide cheaper funding for
  issuers? From an investor’s point of view, how can the security be dissected, and what direves its pricing?
• Equity-Linked and Mezzanine Finance – what is mezzanine finance? How do equity-linked financing techniques
  such as convertible bonds work and when does it make sense to use them? How are they priced? Use of
  Mezzanine finance in Management Buyouts and Leveraged Finance.
• Leveraged Finance – what is leveraged finance? How can it be used to enable a management buyout or other
  forms of ownership transition? When should a company undertake a leveraged recapitalisation?

Summary and recap

Close of masterclass