企业财务管理--长期负债(ppt 24页)（英文版）

企业财务管理--长期负债目录：
1、Long Term Debt: A Review
2、The Public Issue of Bonds
3、Bond Refunding
4、Bond Ratings
5、Some Different Types of Bonds
6、Direct Placement Compared to Public Issues
7、Long-Term Syndicated Bank Loans
8、Summary and Conclusions

 

企业财务管理--长期负债内容提要：
The Public Issue of Bonds
The general procedure is similar to the issuance of stock, as described in the previous chapter.
Indentures and covenants are not relevant to stock issuance.
The indenture is a written agreement between the borrower and a trust company. The indenture usually lists
Amount of Issue, Date of Issue, Maturity
Denomination (Par value)
Annual Coupon, Dates of Coupon Payments
Security
Sinking Funds
Call Provisions
Covenants
Principal Repayment
Term bonds versus serial bonds
Sinking funds--how do they work?
Fractional repayment each year
Good news -- security
Bad news -- unfavorable calls
How trustee redeems
Protective Covenants
Agreements to protect bondholders
Negative covenant: Thou shalt not:
pay dividends beyond specified amount
sell more senior debt & amount of new debt is limited
refund existing bond issue with new bonds paying lower interest rate
buy another company’s bonds
Positive covenant: Thou shalt:
use proceeds from sale of assets for other assets
allow redemption in event of merger or spinoff
maintain good condition of assets
provide audited financial information
The Sinking Fund
There are many different kinds of sinking-fund arrangements:
Most start between 5 and 10 years after initial issuance.
Some establish equal payments over the life of the bond.
Most high-quality bond issues establish payments to the sinking fund that are not sufficient to redeem the entire issue.
Sinking funs provide extra protection to bondholders.
Sinking funs provide the firm with an option.

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