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 33 · 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. 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
  4. 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
  5. 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
  6. 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
  7. 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
  8. 019Aurvika Telecom faces Rs 800 crore, Rs 1,500 crore and Rs 400 crore of maturities over the next three years, with Rs 300 crore of cash and Rs 250 crore of free cash flow a year. Lay out the refinancing plan and say which maturity to address first.Liability management and refinancingCoreCorporate bankingSyndicate desks
  9. 024Sponsor-owned Palveda Auto Parts has a Rs 450 crore unitranche at 5.0x EBITDA of Rs 90 crore. It wants to buy a rival with EBITDA of Rs 20 crore at 8x, funded by Rs 160 crore of extra debt. Compute pro forma leverage with and without Rs 5 crore of synergies, and set your terms for the add-on.Debt capacity and loan structuringCorePrivate creditLeveraged finance
  10. 030Kirtiman Infra can fund Rs 500 crore of capex with senior bonds at 8.6% or a perpetual hybrid at 10.5% that the rating agency gives 50% equity credit. Which keeps its rating, and at what cost?Capital structure decisionsCoreCorporate bankingRating agencies

Company names and figures are illustrative.