Debt Capital Markets case studies, worked step by step

Cases
100
Traced to a firm
34
Topics
12
Hard
30
Topic
All topicsPrivate credit and direct lending8Debt capacity and loan structuring9Bond issuance and execution9Credit analysis and ratings12Asset-backed, project and real-asset lending8Structured finance and securitisation9Leveraged finance and LBO financing11Capital structure decisions6Rates and hedging8Liability management and refinancing8Indian debt market execution5Restructuring and recoveries7
Level
AnyWarm upCoreHard
Source
AnyReported at a firmStandard
Showing 1–10 of 18 · filtered from 100Clear filters
  1. 003Mirashi Infra InvIT is issuing Rs 1,000 crore of five-year bonds. An anchor investor offers Rs 400 crore if the pricing is 10 basis points wider. Do you take it?Bond issuance and executionWarm upSyndicate desksIndian debt capital markets
  2. 012Ekavira Malls buys a three-year 9% interest rate cap on Rs 500 crore of floating debt for a 1% upfront premium. If the benchmark goes to 10.5% for a year, what does the cap pay, and at what rate does it break even?Rates and hedgingWarm upCorporate banking
  3. 013Dhruvika Logistics has a Rs 400 crore bank loan at a floating 9.8% and can issue a five-year bond at a fixed 8.9%. Prepaying the loan costs 0.3%. Should it switch, and what risk changes?Liability management and refinancingWarm upCorporate banking
  4. 022Panchalika Traders wants a Rs 5 crore loan against property valued at Rs 9 crore. Business cash flow is Rs 1.1 crore a year and the loan is for 10 years at 10.5%. Check loan to value and debt service cover and give a decision.Asset-backed, project and real-asset lendingWarm upCorporate bankingIndian debt capital markets
  5. 023Timed written test: from Kanvika Cement's income statement and balance sheet, compute interest cover, debt service cover, fixed charge cover, net leverage and the current ratio, and say which one breaches the lender's policy.Credit analysis and ratingsWarm upCorporate bankingRating agencies
  6. 026Ushmita Auto Parts can discount its invoices on a trade receivables platform at 8.5% a year, or accept its buyers' offer of a 2% discount for paying on day 10 instead of day 60. Which is cheaper money?Asset-backed, project and real-asset lendingWarm upCorporate bankingIndian debt capital markets
  7. 028Hemantra Agro has sales of Rs 1,200 crore, inventory of 90 days, receivables of 45 days and payables of 30 days. What working capital does it carry, and how large a cash credit line would a bank allow at a 25% margin?Debt capacity and loan structuringWarm upCorporate bankingIndian debt capital markets
  8. 031Lakshaka Power's bonds trade at 80. It plans to spend Rs 160 crore of cash buying back Rs 200 crore of face value in the market. What does it gain, what happens to leverage, and what liquidity does it give up?Liability management and refinancingWarm upCorporate bankingRestructuring
  9. 035Sitanshu Pharma has a USD 100 million five-year loan and earns mostly in rupees. The rupee weakens 8%. What does that cost unhedged, and how does it compare with a hedge costing 2.5% a year?Rates and hedgingWarm upCorporate bankingSyndicate desks
  10. 046Sarvagya Pipes has Rs 400 crore of surplus cash. It can pay a special dividend or repay a 9.5% term loan. What does each do to leverage and earnings, and which would a lender prefer?Capital structure decisionsWarm upCorporate banking

Company names and figures are illustrative.