Incurrence Covenants for High Yield Bonds

by Matt - February 17, 2019February 18, 20190

Senior Debt Covenants (Maintenance and Financial Covenants) and Protections A covenant is a vow - positive covenants or covenants of a positive nature (do not commit fraud, file your financial statements no later than 60 days after the end of a fiscal quarter) commit an obligor to do something. Negative covenants

Sale and Leaseback Transactions in Investment Banking

by Matt - February 16, 2019April 25, 20190

When people think of a sale and leaseback transaction, they think about a company that owns some real estate or equipment and then agrees to sell it to a buyer and continues to use the asset sold by leasing it back. Very simple. And because of the simplicity of this arrangement, this

Oil and Gas Investment Banking: Spreading E&P Peer Comparables

by Karl - December 9, 2017March 11, 20180

Written by an oil and gas analyst in a Bulge Bracket investment bank Metrics & Multiples Analysis: Oil and Gas Metrics and multiples are a key dimension of valuation within Investment Banking and Equity Research (and corporate banking). Each metric/multiple tells a different story about the current state of the business. Analysts

Debt Capital Markets Analyst and Associate Work

by Matt - November 26, 2017February 18, 20180

For the most part, DCM analysts and associates do the same thing, except the associate knows the process a lot better and is able to guide the analysts. Identifying Clients for DCM to Talk To DCM will usually have a rolling list of upcoming maturities to look at which companies to approach.

M&A Process Walkthrough

by Matt - October 9, 2017July 15, 20200

In this post we walk through an M&A process from start to finish. M&A Process Summary Teaser/Executive Summary Non-Disclosure Agreement (NDA)/Confidentiality Agreement (CA) Confidential Information Memorandum (CIM)/Offering Memorandum Indication of Interest/Expression of Interest Bid Process Letters Round 1 First Round Bids/Letter of Intent Bidder Selection Bid Process Letters Round 2 Definitive

Types of M&A Sell Side Processes

by Matt - October 8, 2017February 19, 20180

When a company decides to sell itself, or “consider strategic options” in corporate finance lingo, the investment banker must advise on how the process should be conducted in terms of scope. Companies decide to hire an investment bank to market their firm for different reasons, and depending on what the goal

Interview with: Renewables Investment Banker

by Karl - August 2, 2017February 19, 20180

This interview was conducted with a Power Investment Banker specializing in the Renewable Energy space. Renewables are hot right now – is there a difference between which renewables are doing better between solar, wind, hydro, biofuels and geothermal? Why is that? The renewables space has been around for a long time. For

Net Asset Value in Mining

by Jeremy - July 20, 2017February 19, 20185

While many parts of this article on NAV will be applicable to various industries, this article is specifically written for the metals & mining industry. This post is written by a metals & mining investment banker. What is NAV? If you are considering going into the mining industry or are interested in mining, you have probably

Interview with: Equity Research Associate

by Matt - June 10, 2017February 23, 20180

This interview was conducted with an Equity Research Associate at a global bank - securities discussed have been changed What is your background? Canadian target school Honours undergraduate in Accounting. Worked in Big 4 audit for 3 years and got my CPA before "switching to industry" in Consumer Packaged Goods (PepsiCo/RB/Unilever/P&G), where I

Walk Me Through a DCF

by Karl - February 5, 2017February 19, 20180

This is the one question that all interviewees can expect to get in an investment banking interview (and possibly a coffee chat), so there is no excuse to not be prepared for this question coming up – it’s about the same as forgetting to put on a suit. My sentiment is