Finance

Restricted vs. Unrestricted Subsidiaries (cont.) 8 Why would the issuer designate a subsidiary as unrestricted? 01 New business 02 Type of industry: Corporate governance/regulatory limitations 03 Project finance companies (construction etc.) or asset managers Designation can happen at the time of issuance or later 01 Unrestricted Subsidiaries can be designated as such on day 1 by listing them in the definition 02 If an entity is designated after day 1, then there would need to be sufficient capacity under the restricted payments test The Debt Stack – Structuring and Incurrence Covenants

• An Introduction to Leveraged Finance
• Agenda
• Opening Remarks
• Slide Number 4
• Introduction
• Debt stack
• Restricted vs. Unrestricted Subsidiaries
• Restricted vs. Unrestricted Subsidiaries (cont.)
• Typically, who is Restricted?
• Subordination
• Structural Subordination
• Lien/Effective Subordination
• Contractual Subordination
• Typical subordination scenario
• Covenants: Incurrence v. Maintenance
• Purpose of Covenants
• Debt Covenant – Basics
• Debt Covenant – How Does It Work?
• Debt Covenant – How Does It Work? (cont.)
• Debt Covenant – How Does It Work Under Various Instruments?
• Limitation on Restricted Payments – Purpose
• Limitation on Restricted Payments – Carve-outs
• Restricted Payments Covenant – How Does It Work under Various Instruments?
• Understanding HY covenants within Loan Documents
• Financial Statements – The Basic Requirements 
• What Financial Statements Are Required in an OM?
• What Financial Statements Are Required in an OM? (cont.)
• What Financial Statements Are Required in an OM? (cont.) (1)
• Financial Statement Requirements for Acquisitions
• Financial Statement Requirements for Acquisitions (cont.)
• Financial Statement Requirements for Acquisitions (cont.) (1)
• Financial Statement Requirements for Acquisitions (cont.) (2)
• Financial Statement Requirements for Acquisitions (cont.) (3)
• Financial Statement Requirements for Acquisitions (cont.) (4)
• Financial Statement Requirements for Acquisitions (cont.) (5)
• Financial Statement Requirements for Acquisitions (cont.) (6)
• Financial Statement Requirements for Acquisitions (cont.) (7)
• Financial Statement Requirements for Acquisitions (cont.) (8)
• Financial Statement Requirements for Acquisitions (cont.) (9)
• Non-GAAP Financial Metrics
• Non-GAAP Financial Metrics (cont.)
• Non-GAAP Financial Metrics (cont.) (1)
• Non-GAAP Financial Metrics (cont.) (2)
• Recent/Upcoming Developments
• New Environmental/Climate-Change Disclosures Expected in 2023
• Commitment Papers — The Basics
• Timeline of an Acquisition Financing
• Types of Mandate
• Process
• Commitment Papers – The Documents
• Commitment Letter – Conditions to Commitment
• SPA – Key Points
• TSM/Model
• Additional Commitment Letter Considerations
• Termination of Commitment
• Term Sheet
• European Certain Funds
• Syndication Strategy
• Fee Letters
• Other Provisions in Fee Letters
• Our Team
• Our Team (1)
• Slide Number 63