第二十章长期负债(PPT 24页)

Chapter20Long-TermDebt,20.1LongTermDebt:AReview20.2ThePublicIssueofBonds20.3BondRefunding20.4BondRatings20.5SomeDifferentTypesofBonds20.6DirectPlacementComparedtoPublicIssues20.7Long-TermSyndicatedBankLoans20.8SummaryandConclusions,20.1LongTermDebt:AReview,Corporatedebtcanbeshort-term(maturitylessthanoneyear)orlong-term.Differentfromcommonstock:CreditorsclaimoncorporationisspecifiedPromisedcashflowsMostarecallableOverhalfofoutstandingbondsareownedbylifeinsurancecompaniessomesensiblereasonsforcallprovisionsinclude:taxes,managerialflexibilityandthefactthatcallablebondshavelessinterestraterisk.,20.4BondRatings,Whatisrated:Thelikelihoodthatthefirmwilldefault.Theprotectionaffordedbytheloancontractintheeventofdefault.Whopaysforratings:Firmspaytohavetheirbondsrated.Theratingsareconstructedfromthefinancialstatementssuppliedbythefirm.Ratingscanchange.Raterscandisagree.,BondRatings:InvestmentGrade,BondRatings:BelowInvestmentGrade,Junkbonds,AnythinglessthananS&P“BB”oraMoodys“Ba”isajunkbond.Apoliteeuphemismforjunkishigh-yieldbond.Therearetwotypesofjunkbonds:OriginalissuejunkpossiblynotratedFallenangelsratedCurrentstatusofjunkbondmarketPrivateplacementYieldpremiumsversusdefaultrisk,20.5DifferentTypesofBonds,CallableBondsPuttableBondsConvertibleBondsDeepDiscountBondsIncomeBondsFloating-RateBonds,Puttablebonds,PutprovisionsPutpricePutdatePutdefermentExtendiblebondsValueoftheputfeatureCostoftheputfeature,ConvertibleBonds,Whyaretheyissued?Whyaretheypurchased?Conversionratio:NumberofsharesofstockacquiredbyconversionConversionprice:Bondparvalue/ConversionratioConversionvalue:PricepershareofstockxConversionratioIn-the-moneyversusout-the-money,ConvertibleBondPrices,ExampleofaConvertibleBond,MoreonConvertibles,ExchangeablebondsConvertibleintoasetnumberofsharesofathirdcompanyscommonstock.Minimum(floor)valueofconvertibleisthegreaterof:Straightor“intrinsic”bondvalueConversionvalueConversionoptionvalueBondholderspayfortheconversionoptionbyacceptingalowercouponrateonconvertiblebondsversusotherwise-identicalnonconvertiblebonds.,ExampleofanExchangeableBond,20.6DirectPlacementComparedtoPublicIssues,Adirectlong-termloanavoidsthecostofregistrationwiththeSEC.Directplacementislikelytohavemorerestrictivecovenants.Intheeventofdefault,itiseasierto“workout”aprivateplacement.,20.7Long-TermSyndicatedBankLoans,20.8SummaryandConclusions,Thedetailsofthelong-termdebtcontractarecontainedintheindenture.Themainprovisionsare:security,repayment,protectivecovenantsandcallprovisions.Protectivecovenantsaredesignedtoprotectbondholdersfrommanagementdecisionsthatfavorstockholdersatbondholdersexpense.Mostpublicindustrialbondsareunsecuredtheyaregeneralclaimsonthecompanysvalue.Mostutilitybondsaresecured.Ifthefirmdefaultsonsecuredbonds,thetrusteecanrepossesstheasset.,20.8SummaryandConclusions(cont.),Long-termbondsusuallyprovideforrepaymentofprincipalbeforematurity.Thisisusuallyaccomplishedwithasinkingfundwherebyafirmretiresacertainnumberofbondseachyear.Mostpubliclyissuedbondsarecallable.Thereisnosinglereasonforcallprovisions.Somesensiblereasonsincludetaxes,greaterflexibility,an