Course Detail (Course Description By Faculty)

This is an advanced corporate finance class designed to help students develop expertise on the main topics of leveraged finance: credit origination, capital structure, corporate debt, credit cycles, and debt restructuring. In the first part of the class, we will review the types of securities firms issue with an emphasis on their priority over cash flows and their control provisions. We will discuss private credit, leveraged loans, asset-backed debt, private placements, and high yield bonds. We will review basic fixed income asset pricing terms and techniques. We will discuss strategies for determining whether to invest in high yield credit situations for firms.

 

In the distress and restructuring section of the course, will cover credit risk, debt structures (secured, unsecured, off-balance sheet), Chapter 11 versus out-of-court restructuring, financial covenant violations, credit default swaps, collateralized loan obligations, and private credit.

 

This class is designed for students in all finance and consulting fields, but with a particular focus on those who want to work in financial management of firms, private credit, private equity, banking, corporate restructuring, turnaround advising, or fixed income investing.

The following programs will have access to bid on this course for spring 2025: Full-Time, Evening, Weekend, PhD. For information on phase access, please view the Spring 2025 Bid access document here.

 

Business 30000, 33001, 41000 (or 41100), 35000, 35200 strongly recommended for success in this class. Non-Booth students need faculty permission. Cannot enroll in BUSN 35214 if BUSN 35824 taken previously. 

This class will be both lecture and case-based. The cases are mostly original to this course, and focus on realistic situations in originating or investing in leveraged finance situations and in restructuring situations. We will also focus on current events and cases to make the lessons learned in class relevant for those looking to work in leveraged finance.

Grades will be determined by cases, class participation, a final quiz, and a group final project. No pass/fail grades. No provisional grades. No auditors.

Restrictions