The Capital Roundtable – Audio Packages
Second Lien Lending
Why the Second Lien Market Is Staying So Hot,
& How You Can Benefit From the Competition
Among Hedge Funds, Mezz Funds, & Senior Lenders
Designed to Meet the Needs of Middle-Market Investors, Lenders,
Investment Bankers, & the Professionals Who Advise Them
Puchase
MasterClass™ Audio Package ($495.00)
After Listening to This MasterClass™, You'll Know:
- What exactly are second lien loans and why are they so popular now?
- What are the differences among Term B, Term C, SCIL, Second Lien, Last Out Tranche, and stretch senior?
- General perspective on the second lien marketplace, its evolution, and supply and demand factors influencing the recent surge in volume.
- What are the key intercreditor issues?
- The difference between the origination market and the syndicated market.
- Why are hedge funds involved?
- What are the typical structures and terms?
- How has the syndicated loan market made second lien loans very efficient, and has it trickled down to the middle market?
- What are the differences between mezzanine and second lien debt, and how are mezzanine funds coping with the squeeze?
- How has the bond market been influencing second lien debt?
- What is the future of second lien lending -- is it here to stay?
Faculty
Chaired By
- Cameron S. Fleming, Director--Sourcing, GoldenTree Asset Management LP
Hosted By
- Burt Alimansky, Managing Director, Alimansky Capital Group Inc., & Chairman, The Capital Roundtable
Speakers
- Peter E. Bennett, Managing Director, Goldsmith Agio Helms
- Stephen A. Boyko, Partner, Proskauer Rose LLP
- Gregory W. Cashman, Managing Director, Golub Capital
- Michael J. Conaton, Principal, Key Principal Partners LLC
- Bruce A. Eatroff, Executive Managing Director, Halyard Capital
- Joshua W. Easterly, Senior Vice President, Wells Fargo Foothill Inc.
- Michael J. Egan, Executive Vice President & COO, Monroe Capital LLC
- Steven M. Ellis, Partner, Proskauer Rose LLP
- James A. Feeley III, Partner, FriedbergMilstein LLC
- Timothy D. Fording, Vice President, Cerberus Capital Management LP
- Randall W. Gifford, Senior Vice President, LaSalle Debt Capital, LaSalle Bank NA
- Joel A. Holsinger, Managing Director, Navigant Capital Advisors LLC
- Adrian P. Kingshott, Managing Director, Amaranth Group Inc.
- William Koslo, Managing Director, CIBC World Markets Corp.
- C. Todd Kumble, Partner, SPP Capital Partners LLC
- Christopher MacDonald, Silver Point Finance LLC
- Joshua A. Pack, Managing Director, Fortress Investment Group LLC
- Alan S. Waxman, Managing Director, Goldman Sachs Group Inc.
Agenda
The hottest segment of the buyouts market these days is that once-boring middle piece of the capital structure where mezzanine has long been the dominant tool.
Everybody used to call it a "sandwich," with senior secured debt on top, equities on the bottom, and mezzanine notes in the middle.
But now the simple sandwich has transformed into a "dagwood," and that change is causing confusion, even among the experts. For example, the mezzanine and senior layers have splintered into nearly a dozen different instruments with labels like "term B loans," "SCIL," "last out tranche," "stretch senior," and "tranche C," and terms like "standstills" and "waterfalls" have evolved into everyday lending documents. Collectively all these are related to "second lien loans," but each has very subtle but important differences.
The second lien market has skyrocketed to $11.2 billion, up from only $70.0 million in all of 2001. Fueling this huge increase are the hedge funds who have arrived with all the decorum of thirsty elephants shoving their way to a watering hole. In their search for returns they no longer can find in the stock market or in distressed debt, these funds are now willing to accept the increased risk of a junior position in order to gain a better return.
By attending this special MasterClass, you will learn what exactly the breeds of second lien loans are all about, why they are so increasingly popular, what the intercreditor issues are, why some less experienced fund managers may be getting in over their heads, and what predictions experts are making about where this market is going. Most of all, you'll get a sense of how your colleagues are negotiating and structuring their deals, and how they've wrestled with problems you may be about to face.