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Recapitalization Modeling

Event Description


(Please apply promo code AFAS2018 for payment of 2 and more modules of the Advance Financial Analysis Series via the registration portal)

Advanced Financial Analysis Serie​s: 

Recapitalization Modeling (Module 3)

10 & 11 October 2018 (Wednesday & Thursday)

9.00am to 5.00pm

Trainer: Hamilton Lin, CFA

​This workshop module is eligible for 14 ​CE and CPD hours​. 

Course Goals & Overview:

This course walks through the concepts behind company recapitalizations (recaps) and quantifies the impact of the various approaches available. The first section opens with a high-level discussion of recapitalizations and debt/equity swaps. Next is a brief primer on key credit ratios and how they can be implemented with best practices in Excel. The meat of the course then begins and includes multiple recapitalization strategies that are reviewed one by one, thoroughly explained qualitatively and executed quantitatively in a working Excel model. Afterward, these results are reviewed and analyzed, before wrapping up with a complicated scenario and sensitivity layer that can determine viable scenarios based on different assumptions of credit/leverage statistics. What’s left is a comprehensive model capable of simulating strategies for any recap situation. 

Course Sections:​

Intro to Recapitalizations:

  • Understand definition of a recapitalization, including the parties and subjects involved
  • Identify a recapitalization's general motivations and consequences
  • List several real-world use cases of recaps with an emphasis on standard debt-for-equity swaps

Plain Debt Sweep & Credit Ratios:

  • Review basic mechanics of financial statements to understand a debt sweep's structure
  • Create a simple debt/interest schedule in Excel using real historical financial statements
  • Discuss and calculate various key credit ratios including leverage, net leverage, FCCR, and interest coverage
  • Quantify the impact that changes to revenues/expenses have on EBITDA and cash flow

Recapitalization Model – Status Quo and Swap:

  • Start with "status quo" scenario spanning across three cases (base, downside, worst)
  • Add an initial recap option for taking on a debt/equity swap, ensuring the model also accounts for interest rates, etc.

Recapitalization Model Enhancement – Swap with Term Loan:

  • Implement third recap case that breaks out 2nd lien term loan from aggregate tranche
  • Allow the user to modify the amortization schedule for the term loan
  • Learn the implications of this term loan on the mandatory payment schedule

Recapitalization Model Enhancement – Swap with Paid-in-Kind (PIK) Debt:

  • Implement a fourth recap option incorporating the conversion of the debt/equity swap's balance to PIK debt
  • Fully integrate all the PIK components into model, noting the PIK's impact on cash flow
  • Add "cash interest" alternatives for potentially misleading interest coverage ratios

Recapitalization Model Enhancement – Scenario Pairing:

  • Lay out different scenarios depending on assumed credit/leverage statistics
  • Modify the model to easily switch between viable scenarios
  • Create ratings statistics tables for the scenarios to quickly gauge the available options

Recapitalization Model Enhancement – The Works:

  • Implement 5th recap case incorporating the debt/equity swap, a term loan, and PIK debt
  • Add a "Cash DSCR" ratio and utilize Excel's conditional formatting to draw attention to unfavorable scenarios
  • Carefully re-examine DSCR under the fourth and fifth recap options to clarify an otherwise simple analysis


  • Select the best courses of action (per case) to recapitalize, and develop a solid understanding of managing cash flow ​


Intermediate proficiency using Excel and a solid grasp of basic accounting fundamentals and the integration of financial statements are required​

Important Note:

To maximize the educational value of this program, we strongly recommend that you have an intermediate understanding of Excel. Lack of basic Excel skills will impede your ability to effectively acquire and implement the techniques and shortcuts that are presented in this program.​

Bring your PC laptop with a working USB slot and Microsoft Excel installed. Macs may not be as effective

Course fee for Module 3 - (2 Days workshop) :

CFA Society Singapore member :

S$1,750* per module (Early bird fee)

S$2,100* per module (Standard fee)​

Non-member :

S$2,100* per module (Early bird fee)

S$2,500* per module (Standard fee)

*Price subject to 7%  GST

*10% off for signup of 2 or more modules per delegate​

* Early bird fee valid till   8 September 2018

(​Course fee includes : Course materials, lunch & refreshments​)

Requirement: Bring own PC Laptop for the workshop​

Event Type

Society; Educational

Education Topic

Financial Statement Analysis

Start Time

10/10/2018 9:00

End Time

10/10/2018 17:00





Event Country


Event Region

Asia Pacific

Location Info



Hamilton Lin, CFA

CE Credits


SER Credit




Member Price

S$1750 (early bird fee) / $2100 (Standard fee) per module *Subject to 7% GST

Non-Member Price

S$2100 (early bird fee) / $2500 (Standard fee) per module *Subject to 7% GST

Candidate Price



Click HERE​ to register​​​

Please email for more details.

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10 & 11 October 2018



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2018-10-08 to 11 Advanced Financial Analysis Series.pdf    
Content Type: MyCFA Calendar
Created at 8/21/2018 12:52 by[CASMSTS:username]
Last modified at 9/6/2018 13:24 by[CASMSTS:username]