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 50 · filtered from 100Clear filters
  1. 001A Rs 300 crore senior secured loan to Tamrika Water Tech is offered to you at 94 with a 10% coupon and three years left. Defaults run at 4% a year with 60% recovery. What is the yield, the loss-adjusted yield, and would you buy it?Private credit and direct lendingCorePrivate creditCredit research
  2. 004Ambarnagar Municipal Corporation's water revenue bond has net revenue of Rs 180 crore against debt service of Rs 120 crore and a 1.25x rate covenant. Tariffs are frozen for three years while costs rise 6% a year. What happens to coverage, and what does it mean for the credit?Credit analysis and ratingsCoreCredit researchFixed income asset management
  3. 005Brahvi Airports handles 12 million passengers, earning Rs 400 each in regulated charges and Rs 250 each from shops and parking, at a 45% EBITDA margin. It needs Rs 3,000 crore of capex. How much debt can it carry at 1.4x cover over 15 years at 9%, and what does a tariff reset do?Asset-backed, project and real-asset lendingCoreBain CapitalBoston · 2023
  4. 006Anantam Energy's Rs 1,000 crore ten-year bond draws a Rs 2,600 crore book from insurers, mutual funds, banks, hedge funds and corporate treasuries. The issuer wants long-term holders. How do you allocate, and what is each type's fill rate?Bond issuance and executionCoreSyndicate desksFixed income asset management
  5. 008Soralya Cosmetics wants a Rs 200 crore term loan. EBITDA is Rs 90 crore, 30% of it from one product line, 45% of sales come in the festive season, and online sales carry high returns. What should a lender think about on revenue, and how much would you lend?Debt capacity and loan structuringCoreBain CapitalBoston · 2023
  6. 009Karvanya Auto Loans securitises a Rs 1,000 crore pool into senior (85%), mezzanine (10%) and equity (5%) tranches, with excess spread of 2% a year. Cumulative losses reach 7%. Which tranches lose, how does excess spread change the answer, and what credit risks would you evaluate?Structured finance and securitisationCoreMoody'sNew York · 2024
  7. 011Aniketa Biotech can issue a Rs 500 crore five-year convertible at 3% with a 30% conversion premium, or straight debt at 9%. The share price is Rs 400. Compare the interest saving with the dilution if the stock doubles.Capital structure decisionsCoreCorporate bankingSyndicate desks
  8. 014Mervon Hotels has Rs 2,000 crore of floating debt at benchmark plus 250 basis points, EBITDA of Rs 480 crore, and the benchmark at 6.5%. What does a 200 basis point rise do to interest cover, and what does swapping half into fixed at 7.4% change?Rates and hedgingCoreCorporate bankingLeveraged finance
  9. 016Mitravanshi Finance funds Rs 1,000 crore with three-month commercial paper at 7.3% instead of a one-year bond at 8.1%. What does it save in a year, what happens if the paper market shuts for a quarter, and what is a 0.25% backup line worth?Indian debt market executionCoreIndian debt capital marketsRisk management
  10. 017Rushali Ceramics can be liquidated or sold as a going concern at 5x EBITDA of Rs 60 crore. Liquidation would realise 80% of Rs 120 crore of receivables, 50% of Rs 90 crore of inventory and 30% of Rs 250 crore of plant. Debt is Rs 350 crore. Which route gives creditors more?Restructuring and recoveriesCoreRestructuringCorporate banking

Company names and figures are illustrative.