公司理财（英文版·第5版）课件 第24章 债务融资

CorporateFinanceFifthEditionChapter24DebtFinancingCopyright©2020,2017,2014PearsonEducation,Inc.

AllRightsReservedChapterOutline24.1CorporateDebt24.2OtherTypesofDebt24.3BondCovenants24.4RepaymentProvisionsLearningObjectives(1of3)Identifytypicalsourcesofdebtforcorporations.Describethebondindenture.Definethefollowingterms:notes,debentures,mortgagebonds,andasset-backedbonds.Identifywhichofthesearesecured,andwhicharesenior.Identifyanddefinethefourbroadlydefinedcategoriesthatcompriseinternationalbonds.LearningObjectives(2of3)Definetermloanandprivateplacement,andcontrastthetwoformsofprivatedebt.IdentifyfourdifferenttypesofsecurityissuedbytheU.S.Treasury.Identifythecharacteristicsofmunicipalbonds.LearningObjectives(3of3)Definethetermasset-backedsecurityandgiveseveralexamplesofissuersandtypesofsuchsecurities.Definethefollowingbondterminology:covenants,callprovision,callablebond,yieldtocall,sinkingfund,andconvertiblebonds.Compareandcontrastconvertibleandcallablebondswithstraightdebt.24.1CorporateDebtLeveragedBuyout(L

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O)Whenagroupofprivateinvestorspurchasealltheequityofapubliccorporationandfinancesthepurchaseprimarilywithdebt.Forexample,HertzwastakenprivatethroughanL

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O.Table24.1NewDebtIssuedasPartoftheHertzLBOTypeofDebtAmount(in$million)Publicdebt

BlankJunkbondissues2,668.9Privatedebt

BlankTermloan1,707.0Asset-backedrevolvinglineofcredit400.0Asset-backed“fleet”debt6,348.0Total$11,123.9PublicDebt(1of16)TheProspectusApublicbondissueissimilartoastockissue.IndentureIncludedinaprospectus,itisaformalcontractbetweenabondissuerandatrustcompany.Thetrustcompanyrepresentsthebondholdersandmakessurethatthetermsoftheindentureareenforced.Inthecaseofdefault,thetrustcompanyrepresentstheinterestsofthebondholders.Figure24.1FrontCoveroftheOfferingMemorandumoftheHertzJunkBondIssueSource:CourtesyHertzCorporationPublicDebt(2of16)Corporatebondsalmostalwayspaycouponssemiannually,althoughafewcorporationshaveissuedzero-couponbonds.Mostcorporatebondshavematuritiesof30yearsorless.PublicDebt(3of16)Thefacevalueorprincipalamountofabondisdenominatedinstandardincrements,mostoften$1000.Thefacevaluedoesnotalwayscorrespondtotheactualmoneyraisedbecauseofunderwritingfeesand/orifthebondisissuedatadiscount.OriginalIssueDiscountBondDescribesabondthatisissuedatadiscountPublicDebt(4of16)BearerBondsandRegisteredBondsBearerBondsSimilartocurrencyinthatwhoeverphysicallyholdsthebondcertificateownsthebond.Toreceiveacouponpayment,theholderofabearerbondmustprovideexplicitproofofownershipbyliterallyclippingacouponoffthebondcertificateandremittingittothepayingagent.PublicDebt(5of16)BearerBondsandRegisteredBondsRegisteredBondsTheissuerofthistypeofbondmaintainsalistofallholdersofitsbonds.Couponandprincipalpaymentsaremadeonlytopeopleonthislist.Almostallbondstodayareregisteredbonds.PublicDebt(6of16)TypesofCorporateDebtUnsecuredDebtAtypeofcorporatedebtthat,intheeventofbankruptcy,givesbondholdersaclaimtoonlytheassetsofthefirmthatarenotalreadypledgedascollateralonotherdebt.PublicDebt(7of16)TypesofCorporateDebtNotesAtypeofunsecuredcorporatedebtNotestypicallyarecouponbondswithmaturitiesshorterthan10years.DebenturesAtypeofunsecuredcorporatedebtDebenturestypicallyhavelongermaturitiesthannotes.PublicDebt(8of16)TypesofCorporateDebtSecuredDebtAtypeofcorporatedebtinwhichspecificassetsarepledgedascollateral.PublicDebt(9of16)TypesofCorporateDebtMortgageBondsAtypeofsecuredcorporatedebt.Realpropertyispledgedascollateralthatbondholdershaveadirectclaimtointheeventofbankruptcy.Allclassesofsecuritiesarepaidfromthesamecashflowsource.PublicDebt(10of16)TypesofCorporateDebtAsset-BackedBondsAtypeofsecuredcorporatedebt.Specificassetsarepledgedascollateralthatbondholdershaveadirectclaimtointheeventofbankruptcy.Canbesecuredbyanykindofasset.Table24.2TypesofCorporateDebtSecuredUnsecuredMortgagebonds(securedwithproperty)Notes(originalmaturitylessthan10years)Asset-backedbonds(securedwithanyasset)DebenturesPublicDebt(11of16)TypesofCorporateDebtTranchesDifferentclassesofsecuritiesthatcompriseasinglebondissue.Allclassesofsecuritiesarepaidfromthesamecashflowsource.Table24.3Hertz’sDecember2005JunkBondIssues(1of2)blankSeniorDollar-DenominatedNoteSeniorEuro-DenominatedNoteSubordinatedDollar-DenominatedNoteFaceValue$1.8billion€225million$600millionMaturityDecember1,2014December1,2014December1,2016Coupon8.875%7.875%10.5%IssuepriceParParParYield8.875%7.875%10.5%CallfeaturesUpto35%oftheoutstandingprincipalcallableat108.875%inthefirstthreeyears.Upto35%oftheoutstandingprincipalcallableat107.875%inthefirstthreeyears.Upto35%oftheoutstandingprincipalcallableat110.5%inthefirstthreeyears.blankAfterfouryears,fullycallableat:104.438%in2010102.219%in2011ParthereafterAfterfouryears,fullycallableat:103.938%in2010101.969%in2011ParthereafterAfterfiveyears,fullycallableat:105.25%in2011103.50%in2012101.75%in2013ParthereafterTable24.3Hertz’sDecember2005JunkBondIssues(2of2)blankSeniorDollar-DenominatedNoteSeniorEuro-DenominatedNoteSubordinatedDollar-DenominatedNoteSettlementDecember21,2005December21,2005December21,2005RatingblankblankblankStandard&

Poor’sBBBMoody’sB1B1B3FitchBBminusBBminusBplusPublicDebt(12of16)SeniorityAbondholder’spriorityinclaimingassetsnotalreadysecuringotherdebt.Mostdebentureissuescontainclausesrestrictingthecompanyfromissuingnewdebtwithequalorhigherprioritythanexistingdebt.PublicDebt(13of16)SenioritySubordinatedDebenturesDebtthat,intheeventofadefault,hasalowerpriorityclaimtothefirm’sassetsthanotheroutstandingdebt.PublicDebt(14of16)BondMarketsInternationalBondsDomesticBondsBondsissuedbyalocalentityandtradedinalocalmarket,butpurchasedbyforeigners.Theyaredenominatedinthelocalcurrency.ForeignBondsBondsissuedbyaforeigncompanyinalocalmarketandintendedforlocalinvestors.Theyaredenominatedinthelocalcurrency.PublicDebt(15of16)BondMarketsInternationalBondsForeignBondsYankeeBondsForeignbondsintheUnitedStatesSamuraiBondsForeignbondsinJapanBulldogsForeignbondsintheUnitedKingdomPublicDebt(16of16)BondMarketsInternationalBondsEurobondsInternationalbondsthatarenotdenominatedinthelocalcurrencyofthecountryinwhichtheyareissued.GlobalBondsBondsthatareofferedforsaleinseveraldifferentmarketssimultaneously.Globalbondscanbeofferedforsaleinthesamecurrencyasthecountryofissuance(unlikeEurobonds).PrivateDebt(1of3)PrivateDebtDebtthatisnotpubliclytradedHastheadvantagethatitavoidsthecostofregistrationbuthasthedisadvantageofbeingilliquid.PrivateDebt(2of3)TermLoansAbankloanthatlastsforaspecificterm.SyndicatedBankLoanAsingleloanthatisfundedbyagroupofbanksratherthanjustasinglebank.RevolvingLineofCreditAcreditcommitmentforaspecifictimeperiod,typicallytwotothreeyears,whichacompanycanuseasneeded.PrivateDebt(3of3)PrivatePlacementsAbondissuethatissoldtoasmallgroupofinvestorsratherthanthegeneralpublic.Becauseaprivateplacementdoesnotneedtoberegistered,itislesscostlytoissuethanpublicdebt.In1990,theS

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CissuedRule144A,whichallowsprivatedebtissuedunderthisruletobetradedbylargefinancialinstitutionsamongthemselves.Becausethisdebtistradablebetweenfinancialinstitutions,itisonlyslightlylessliquidthanpublicdebt.24.2OtherTypesofDebtSovereignDebtSovereignDebtDebtissuedbynationalgovernmentsU.S.TreasurysecuritiesrepresentsthesinglelargestsectoroftheU.S.bondmarket.SovereignDebt(1of7)TheU.S.TreasuryissuesTreasuryBillsPurediscountbondswithmaturitiesupto26weeksTreasuryNotesSemiannualcouponbondswithmaturitiesof2to10yearsSovereignDebt(2of7)TheU.S.TreasuryissuesTreasuryBondsSemiannualcouponbondswithmaturitieslongerthan10yearsLongBondsBondsissuedbytheU.S.Treasurywiththelongestoutstandingmaturities(currently30years)AllincomefromTreasurysecuritiesistaxableatthefederallevelbutnottaxableatthestateandlocallevel.Table24.4ExistingU.S.TreasurySecuritiesTreasurySecurityTypeOriginalMaturityBillsDiscount4,13,26,and52weeksNotesCoupon2,3,5,7,and10yearsBondsCoupon30yearsInflationindexedCoupon5,10,and30yearsSovereignDebt(3of7)T

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S(Treasury-Inflation-ProtectedSecurities)Aninflation-indexedbondissuedbytheU.S.Treasurywithmaturitiesof5,10,and20years.Theyarestandardfixed-ratecouponbondswithonedifference:Theoutstandingprincipalisadjustedforinflation.TextbookExample24.1(1of2)CouponPaymentsonInflation-IndexedBondsProblemOnJanuary15,2011,theU.S.Treasuryissueda10-yearinflation-indexednotewithacouponof11/8%.Onthedateofissue,theconsumerpriceindex(C

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I)was220.223.OnJanuary15,2018,theC

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Ihadincreasedto247.867.WhatcouponpaymentwasmadeonJanuary15,2018?TextbookExample24.1(2of2)SolutionBetweentheissuedateandJanuary15,2018,theC

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IappreciatedbyConsequently,theprincipalamountofthebondincreasedbythisamount;thatis,theoriginalfacevalueof$1000increasedto$1125.53.Becausethebondpayssemiannualcoupons,thecouponpaymentwasAlternativeExample24.1(1of2)ProblemOnApril15,1998,theU.S.Treasuryissueda30-yearinflation-indexednotewithacouponof3Onthedateofissue,theconsumerpriceindex(C

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I)was161.740.OnApril15,2012,theC

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Ihadincreasedto229.177.WhatcouponpaymentwasmadeonApril18,2012?AlternativeExample24.1(2of2)SolutionBetweentheissuedateandApril15,2012,theC

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IappreciatedbyConsequently,theprincipalamountofthebondincreasedtoThesemiannualcouponpaymentwasSovereignDebt(4of7)TreasurysecuritiesaresoldbyauctionTwotypesofbidsareallowedCompetitiveCompetitivebidderssubmitsealedbidsintermsofyieldsandtheamountofbondstheyarewillingtopurchase.TheTreasurythenacceptsthelowestyield(highestprice)competitivebidsuptotheamountrequiredtofundthedeal.SovereignDebt(5of7)Treasurysecuritiesaresoldbyauction.Twotypesofbidsareallowed.NoncompetitiveNoncompetitivebidders(usuallyindividuals)justsubmittheamountofbondstheywishtopurchaseandareguaranteedtohavetheirordersfilledattheauction.SovereignDebt(6of7)Stop-OutYieldThehighestyieldcompetitivebidthatwillfundaparticularU.S.Treasurysecurityissuewhenallsuccessfulbidders(includingthenoncompetitivebidders)areawardedthisyield.SovereignDebt(7of7)S

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S(SeparateTradingofRegisteredInterestandPrincipalSecurities)Zero-couponTreasurysecuritieswithmaturitieslongerthanoneyearthattradeinthebondmarketTheTreasuryitselfdoesnotissueS

T

R

I

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S.Instead,investmentbankspurchaseTreasurynotesandbondsandthenreselleachcouponandprincipalpaymentseparatelyasazero-couponbond.MunicipalBonds(1of4)MunicipalBonds(Munis)BondsissuedbystateandlocalgovernmentsTheyarenottaxableatthefederallevel(andsometimesatthestateandlocallevelaswell)Sometimesreferredtoastax-exemptbondsMunicipalBonds(2of4)MunicipalBonds(Munis)Mostpaysemi-annualinterestFixedRateHasthesamecouponoverthelifeofthebondFloatingRateThecouponofthebondisadjustedperiodically.MunicipalBonds(3of4)SerialBondsAsingleissueofmunicipalbondsthatarescheduledtomatureseriallyoveraperiodofyearsGeneralObligationBondsBondsbackedbythefullfaithandcreditofthelocalgovernmentMunicipalBonds(4of4)RevenueBondsMunicipalbondsforwhichthelocalorstategovernmentcanpledgeasrepaymentrevenuesgeneratedbyspecificprojectsDouble-BarreledDescribesmunicipalbondsforwhichtheissuinglocalorstategovernmenthasstrengtheneditspromisetopaybycommittingitselftousinggeneralrevenuetopayoffthebondsAsset-BackedSecurities(1of6)SecuritiesmadeupofotherfinancialsecuritiesSecurity’scashflowscomefromthecashflowsoftheunderlyingfinancialsecuritiesthat“back”it.AssetSecuritizationTheprocessofcreatinganasset-backedsecurity.Asset-BackedSecurities(2of6)Mortgage-BackedSecurityLargestsectoroftheasset-backedsecuritymarketBackedbyhomemortgagesLargestissuersareU.S.governmentagenciesandsponsoredenterprises,suchastheGovernmentNationalMortgageAssociation(G

N

M

A)Asset-BackedSecurities(3of6)G

N

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A-issuedmortgage-backedsecuritiesareexplicitlyguaranteedagainstdefaultriskbytheU.S.government.InvestorsstillhaveprepaymentriskTheriskthatthebondwillbepartially(orwholly)repaidearlierthanexpectedAsset-BackedSecurities(4of6)OthergovernmentsponsoredenterprisesissuingmortgagebackedsecuritiesFederalNationalMortgageAssociation(F

N

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A)FederalHomeLoanMortgageCorporation(F

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L

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Cor“FreddieMac”)StudentLoanMarketingAssociation(“SallieMae”)Asset-backedsecuritiesbackedbystudentloansAsset-BackedSecurities(5of6)TheentitiesonthepreviousslidearenotexplicitlybackedbythefullfaithandcreditoftheU.S.government,butmanybelievethereisanimplicitguarantee.Asset-BackedSecurities(6of6)Privateorganizations,suchasbanks,alsoissueasset-backedsecurities.Backedbyhomemortgages,autoloans,creditcardreceivables,andotherconsumerloansCollateralizedDebtObligation(C

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O)Are-securitizationofotherasset-backedsecuritiesOftendividedintotranchesthatareassigneddifferentrepaymentpriority24.3BondCovenantsCovenantsRestrictiveclausesinabondcontractthatlimittheissuersfromundercuttingtheirabilitytorepaythebondsForexample,covenantsmayRestricttheabilityofmanagementtopaydividendsRestricttheleveloffurtherindebtednessSpecifythattheissuermustmaintainaminimumamountofworkingcapital24.4RepaymentProvisions(1of2)AbondissuertypicallyrepaysitsbondsbymakingcouponandprincipalpaymentsasspecifiedinthebondcontractHowever,theissuercan:Repurchaseafractionoftheoutstandingbondsinthemarket MakeatenderofferfortheentireissueExerciseacallprovision24.4RepaymentProvisions(2of2)CallableBondsBondsthatcontainacallprovisionthatallowstheissuertorepurchasethebondsatapredeterminedpriceCallProvisions(1of7)Acallfeatureallowstheissuerofthebondtheright(butnottheobligation)toretirealloutstandingbondson(orafter)aspecificdate(thecalldate),forthecallprice.Thecallpriceisgenerallysetatorabove,andexpressedasapercentageof,thebond’sfacevalue.CallProvisions(2of7)Afirmmaychoosetocallabondissueifinterestrateshavefallen.Theissuercanloweritsborrowingcostsbyexercisingthecallonthecallablebondandthenimmediatelyrefinancingtheissueatalowerrate.Note:Ifratesriseafterabondisoriginallyissued,thereisnoneedtorefinance.CallProvisions(3of7)Holdersofcallablebondsunderstandthattheissuerwillexercisethecalloptiononlywhenthecouponrateofthebondexceedstheprevailingmarketrate.Ifabondiscalled,investorsmustreinvesttheproceedswhenmarketratesarelowerthanthecouponratetheyarecurrentlyreceiving.Thismakescallablebondsrelativelylessattractivetobondholdersthanidenticalnon-callablebonds.Acallablebondwilltradeatalowerprice(andthereforeahigheryield)thananotherwiseequivalentnon-callablebond.CallProvisions(4of7)Considerwhathappenstoabondthatiscallableatparononlyonespecificdate.Onthecalldate:Iftheyieldofthecallablebondislessthanthecoupon,thecallablebondwillbecalled,soitspriceisitsparvalue.Ifthisyieldisgreaterthanthecoupon,thenthecallablebondwillnotbecalled,soithasthesamepriceasthenon-callablebond.Note:Thecallablebondpriceiscappedatpar:Thepricecanbelowwhenyieldsarehighbutdoesnotriseabovetheparvaluewhentheyieldislow.Figure24.2PricesofCallableandNon-CallableBondsontheCallDateCallProvisions(5of7)PriortotheCallDateWhenmarketyieldsarehighrelativetothebondcoupon,investorsanticipatethatthelikelihoodofexercisingthecallislowandthebondpriceissimilartoanotherwiseidenticalnon-callablebond.CallProvisions(6of7)PriortotheCallDateWhenmarketyieldsarelowrelativetothebondcoupon,investorsanticipatethatthebondwilllikelybecalled,soitspriceisclosetothepriceofanon-callablebondthatmaturesonthecalldate.Figure24.3PricesofCallableandNon-CallableBondsPriortotheCallDateCallProvisions(7of7)YieldtoCall(Y

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C)TheyieldofacallablebondcalculatedundertheassumptionthatthebondwillbecalledontheearliestcalldateTextbookExample24.2(1of5)CalculatingtheYieldtoCallProblemI

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Mhasjustissuedacallable(atpar)five-year,8%couponbondwithannualcouponpayments.Thebondcanbecalledatparinoneyearoranytimethereafteronacouponpaymentdate.Ithasapriceof$103per$100facevalue.Whatisthebond’syieldtomaturityandyieldtocall?TextbookExample24.2(2of5)SolutionThetimelineofthepromisedpaymentsforthisbond(ifitisnotcalled)isSettingthepresentvalueofthepaymentsequaltothecurrentpricegivesTextbookExample24.2(3of5)SolvingforY

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M(usingtheannuityspreadsheet)givesthebond’syieldtomaturity:BlankNPERRATEPVPMTFVExcelFormulaGiven5Blankminus1038100BlankSolveforRateBlank7.26%BlankBlankBlankRATE(5,8,minus103,100)TextbookExample24.2(4of5)Thebondhasayieldtomaturityof7.26%.ThetimelineofthepaymentsifthebondiscalledatthefirstavailableopportunityisSettingthepresentvalueofthesepaymentsequaltothecurrentpricegivesSolvingforY

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Cgivestheyieldtocall:TextbookExample24.2(5of5)Theannuityspreadsheetcanbeusedtoderivethesameresult:BlankNPERRATEPVPMTFVExcelFormulaGiven5Blankminus1038100BlankSolveforRateBlank4.85%BlankBlankBlankRATE(5,8,minus103,100)AlternativeExample24.2(1of2)ProblemAntechasjustissuedacallable(atpar)five-year,6%couponbondwithannualcouponpayments.Thebondcanbecalledat$1050inoneyearoranytimethereafteronacouponpaymentdate.Ithasacurrentpriceof$1000.Whatisthebond’syieldtocall?AlternativeExample24.2(2of2)SolutionYieldtoMaturitySinkingFunds(1of3)SinkingFundAmethodofrepayingabondinwhichacompanymakesregularpaymentsintoafundadministeredbyatrusteeoverthelifeofthebondThesepaymentsarethenusedtorepurchasebonds.Thisallowsthefirmtoretiresomeoftheoutstandingdebtwithoutaffectingthecashflowsoftheremainingbonds.SinkingFunds(2of3)Ifthebondsaretradingatadiscount,thecompanywillrepurchasethebondsinthemarket.Ifthebondsaretradingaboveitsfacevalue,thebondsarerepurchasedatpar.WhichbondsarerepurchasedisdecidedbyalotterySinkingFunds(3of3)BalloonPaymentAlargepaymentthatmustbemadeonthematuritydateofabondSomesinkingfundsrequireequalpaymentsoverthelifeofthebond.Inothercases,thesinkingfundpaymentsarenotsufficienttoretiretheentireissueandthecompanymustmakeaballoonpayment.ConvertibleProvisions(1of5)ConvertibleBondAco