MGFC10_Chapter 21_LongTermDebt_Notes.pdf - Long-Term Debt 1 Outline \u2022 Long-Term Debt A Review \u2022 The Public Issue of Bonds \u2022 Bond Refunding \u2022

MGFC10_Chapter 21_LongTermDebt_Notes.pdf - Long-Term Debt 1...

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Long-Term Debt 1
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Outline Long-Term Debt: A Review The Public Issue of Bonds Bond Refunding Bond Ratings Some Different Types of Bonds Direct Placement Compared to Public Issues Long-Term Syndicated Bank Loans Summary and Conclusions
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Long Term Debt: A Review Corporate debt can be short-term (maturity less than one year) or long-term . Can be public issued or privately placed. Different from shares: Creditor’s claim on corporation is specified Promised cash flows Most are callable
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Features of a Typical Bond The indenture usually lists Amount of Issue, Date of Issue, Maturity Denomination (Face value) Annual Coupon, Dates of Coupon Payments Security Sinking Funds Call Provisions Covenants Features that may change over time Rating Yield-to-Maturity Market price
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