企业财务管理20.pdfVIP

20-0 CHAPTER Long-Term Debt 20-1 Chapter 20 Long-Term Debt 20.1 Long Term Debt: A Review 20.1 Long Term Debt: A Review 20.2 The Public Issue of Bonds 20.2 The Public Issue of Bonds 20.3 Bond Refunding 20.3 Bond Refunding 20.4 Bond Ratings 20.4 Bond Ratings 20.5 Some Different Types of Bonds 20.5 Some Different Types of Bonds 20.6 Direct Placement Compared to Public Issues 20.6 Direct Placement Compared to Public Issues 20.7 Long-Term Syndicated Bank Loans 20.7 Long-Term Syndicated Bank Loans 20.8 Summary and Conclusions 20.8 Summary and Conclusions 20-2 20.1 Long Term Debt: A Review Corporate debt can be short-term (maturity less than one Corporate debt can be short-term (maturity less than one year) or long-term. year) or long-term. Different from common stock: Different from common stock: Creditor’s claim on corporation is specified Creditor’s claim on corporation is specified Promised cash flows Promised cash flows Most are callable Most are callable Over half of outstanding bonds are owned by life Over half of outstanding bonds are owned by life insurance companies pension funds insurance companies pension funds Plain vanilla bonds to “kitchen sink” bonds Plain vanilla bonds to “kitchen sink” bonds 20-3 Features of a Typical Bond The indenture usually lists The indenture usually lists Amount of Issue, Date of Issue, Maturity Amount of Issue, Date of Issue, Maturity Denomination (Par value) Denomination (Par value) Annual Coupon, Dates of Coupon Payments Annual Coupon, Dates of Coupon Payments Security Security Sinking Funds Si