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 11–20 of 33 · filtered from 100Clear filters
  1. 034Ekanta Capital Fund I asks for a subscription line. Commitments are Rs 2,000 crore, Rs 1,200 crore uncalled, 70% of it from eligible investors, at a 50% advance rate. How large can the facility be, and what is the lender really exposed to?Private credit and direct lendingCorePrivate creditCorporate banking
  2. 036Leveraged finance case: size and price the debt for a sponsor buyout of Zorvani Chemicals, EBITDA Rs 250 crore, where comparable deals ran at 4.5x to 5.0x. Propose senior and second lien tranches and check interest cover.Leveraged finance and LBO financingCoreLeveraged financeSyndicate desks
  3. 038Corvanta Telecom's group needs Rs 500 crore. Should a lender lend at the holding company or with a guarantee from the operating company, which already has Rs 1,200 crore of debt? Test it in a downside where group value falls to Rs 1,400 crore.Debt capacity and loan structuringCoreCorporate bankingCredit research
  4. 045Sriyansh Cement can issue three years at 7.9%, five years at 8.2% or ten years at 8.6%, and already has Rs 1,200 crore maturing in year 3. Which tenor would you recommend, and why is the cheapest coupon not the answer?Bond issuance and executionCoreSyndicate desksCorporate banking
  5. 047Udayachal Highways' bond is rated BBB on its own. A bank's partial credit enhancement covering 20% of the bond lifts it to AA and cuts the coupon by 150 basis points on Rs 1,000 crore, for a fee of 1.2% a year on the amount covered. Is it worth it, and what does the investor now rely on?Indian debt market executionCoreIndian debt capital marketsCorporate banking
  6. 048Brahmila Cement's Rs 500 crore 10% bond is callable at 101 with four years left. It can issue new four-year bonds at 8.2% with issue costs of 0.5%. What is the net present value of calling and refinancing?Liability management and refinancingCoreSyndicate desksCorporate banking
  7. 050Anvayana Home Loans wants to sell Rs 500 crore of home loans. Compare a direct assignment at the pool yield with a pass-through structure needing 10% credit enhancement: what does each do to its income, and how much risk does it really shed?Structured finance and securitisationCoreStructured creditIndian debt capital markets
  8. 051A state power utility borrows floating from banks and wants a fixed cost for five years. Should it swap the loan to fixed or refinance with a state-guaranteed fixed bond?Rates and hedgingCoreCorporate bankingIndian debt capital markets
  9. 052A sponsor-owned clinic chain wants to borrow more to pay itself a large dividend. Work out what the recap does to leverage and cover, and say whether a lender should agree.Leveraged finance and LBO financingCoreLeveraged financePrivate credit
  10. 053A steel company with surplus cash can buy back its expensive bonds at a premium through a tender offer. Is paying 104 for 9.5% bonds worth it when the cash earns 7%?Liability management and refinancingCoreSyndicate desksCorporate banking

Company names and figures are illustrative.