COURSE INFORMATION Course Title: MEZZANINE FINANCE

Code	Course Type	Regular Semester	Theory	Practice	Lab	Credits	ECTS
BAF 305	C	5	3	0	0	3	5

Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature)	NA
Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	Nertil Mera
Second Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	NA
Teaching Assistant(s) and Office Hours:	NA
Language:	English
Compulsory/Elective:	Elective
Classroom and Meeting Time:
Course Description:	The course will use real life case studies and examples of transactions to develop students’ understanding of the leveraged and mezzanine financing techniques being discussed. Most of the case studies are designed to encourage students to think more closely about the issues involved and discuss them as a group. The course is designed to improve the students’ skills in acquisition analysis, structuring and valuation. Many examples will be provided to illustrate the key principles and to develop students’ understanding of real-life applications.
Course Objectives:	This course provides the students a thorough understanding of mezzanine financing techniques in the context of public and private equity structures. Students will be introduced to international practice in executing leveraged transactions, which includes due diligence, accounting issues and valuation techniques. Case studies will provide the students the opportunity to structure leveraged finance transactions by themselves. Facilities of leverage and its ability to lower the WACC will be of main concern in order to understand the mezzanine financing. Different types of leveraged transactions (based on mezzanine financing) will be introduced to the students; including hybrid systems (convertibles, structured products, non-senior debt financing etc).

COURSE OUTLINE

Week	Topics
1	Syllabus Review and Introduction
2	The Mezzanine Product Group
3	The Implicit Cost of Mezzanine Products
4	The Pricing Question and Further Financial Dynamics of Convertible Loans and Preferred Convertible Shares
5	The Mezzanine Product Group and the Financial Industry (continues)
6	The Mezzanine Product Group and the Financial Industry
7	Mezzanine and Project Finance
8	Mid-Term exam
9	Real Estate Projects and Mezzanine Finance
10	Mezzanine and the Private Equity Space
11	Mezzanine Products and the World of the Rating Agencies and Accountancy Boards (continues)
12	Mezzanine Products and the World of the Rating Agencies and Accountancy Boards
13	Term-Sheets, Inter-Creditor Agreements and Debt Restructuring
14	Outlook and Review before Final Exam

Prerequisite(s):
Textbook:	Mezzanine Financing; Tools, Applications and Total Performance (2014) – Luc Nijs
Other References:
Laboratory Work:
Computer Usage:
Others:	No

COURSE LEARNING OUTCOMES

1	Examine the principles involved in structuring leveraged buy-out transactions
2	2. Develop their understanding of modeling the cash flows in a leveraged transaction involving mezzanine financing techniques
3	3. Obtain a greater awareness of how to structure and finance mergers and acquisitions generally
4	4. Understand how to structure a highly leveraged transaction including documentation
5	5. Practice estimating the cost of debt and equity capital for a company and using the techniques learned to enhance shareholder value by building better capital structures

COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES (Blank : no contribution, 1: least contribution ... 5: highest contribution)

No	Program Competencies	Cont.
Bachelor in Banking and Finance (3 years) Program
1	The students are gained the ability to look at the problems of daily life from a broader perspective. They gain the needed skills not only to understand economic problems in banking and finance but also to construct a model and defend in meaningful way.	5
2	They have knowledge about the finance and banking.	5
3	They have knowledge about the money and banking.	5
4	They have knowledge about the international finance and banking.	5
5	They have ability to use mathematical and statistical methods in banking and finance.	4
6	They know how to use computer programs in both daily office usage and statistical data evaluations in banking and finance department.	5
7	They have necessary banking and finance skills that needed in private and public sector.	5
8	They are intended to be specialist in one of departmental fields that they choose from the list of general economics, finance economics, public finance, corporate finance, finance management, international finance markets and institutions, banking and central banking, international finance and banking, money and banking, international trade and banking.	5
9	They have ability to utilize fundamental economic theories and tools to solve economic problems in banking and finance.	5
10	They are aware of the fact that banking and finance is a social science and they respect the social perspectives and social values of the society’s ethics.	5

COURSE EVALUATION METHOD

Method	Quantity	Percentage
Midterm Exam(s)	1	30
Project	1	20
Final Exam	1	40
Attendance		10
	Total Percent:	100%

ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)

Activities	Quantity	Duration(Hours)	Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours)	16	3	48
Hours for off-the-classroom study (Pre-study, practice)	16	3	48
Mid-terms	1	7	7
Assignments			0
Final examination	1	7	7
Other	15	1	15
Total Work Load:			125
Total Work Load/25(h):			5
ECTS Credit of the Course:			5