Debt Financing Simulation
Students truly understand debt and capital structures by managing a loan refinancing
Simulation Overview
The Debt Financing simulation is a highly realistic financial simulation crafted by experienced Corporate Finance professionals. It accurately replicates real-life discussions between lenders and borrowers.
It illustrates how analyzing subtle and thoughtful insights into company circumstances can result in wiser company evaluation and financial advantages.
This multiplayer simulation emphasizes critical thinking through analysis, strategy, and deal closure. Students are assessed based on the favorable terms they achieve in the negotiation.
Key Features
Duration
3 to 5 hours
Ideal for
MSc, MBA, 3rd BSc students
Pre-requisites
Basic understanding of Debt & Equity
Approach
Adaptive learning by doing in a competitive team setting
Grading
Simulator provides assessment data to grade students
Instructions
Explained by videos, case studies, pop-up windows
Real-time feedback and scores
Provided by simulator
Facilitator
Simulator runs by itself (coaching is optional)
Clocks, rules and validation
Managed by the simulator
Location
Online, in-classroom or hybrid
Overview: Debt Financing
- Understand debt to unlock the secrets of finance - Become lenders and borrowers in a high-stakes competition - Dive into an intense real-world financial transaction
44 seconds
Pricing
Per participant, valid for 50+ students
| Currency | DIY | Primed | Guided | Facilitated |
|---|---|---|---|---|
| USD | USD 19 | USD 33 | USD 46 | USD 59 |
| EUR | EUR 17 | EUR 29 | EUR 39 | EUR 53 |
| GBP | GBP 15 | GBP 25 | GBP 35 | GBP 45 |
Need to apply for internal funding approval?
Show Business CaseCreators of the Debt Financing Simulation
The following industry professionals were involved from the beginning in the inception, creation, development, testing, and optimization of the simulation.
Practitioner, structured debt instruments, borrower and lender sides, Olaf Rottke.
Managed debt transactions, Morgan Stanley and HPS Investment Partners, Gerhard Wortche.
Ex Finance Director, Precomp Tools, Aatmay Upponi.
Leveraged Finance specialist, Morgan Stanley, SMBC, and Citi, Georgi Naydenov.
Seasoned finance experience, UBS, Morgan Stanley and Deutsche Bank, Andrey Simonov.
Facilitator Resources
Concepts
- Debt vs. Equity Financing
- Debt Terms
- Debt Covenants
- Debt Issuance Process
- Capital Structures
Learning Outcomes
- Understand different types of Capital Structures
- Evaluate appropriate levels of debt for a company's balance sheet
- Understand the perspectives and incentives of both - borrowers and lenders
- Recognize key terms in loan agreements
- Assess different types of security
- Differentiate between financial, affirmative, and negative covenants
- Describe the advantages and limitations of covenant lite loans and the importance of leverage covenants
- Understand holding company structures and various forms of subordination
- Define events of default and outline potential responses to technical and payment defaults, including waivers, amendments, restructuring, and liquidation
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Book a Demo
Join this 20-minute webinar, followed by a Q&A session, to immerse yourself in the simulation.