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 21–30 of 30 · filtered from 100Clear filters
  1. 074Modelling test: a half-filled debt schedule gives opening balances, rates, the sweep and cash flow, but the sweep, PIK accrual and closing balances are blank and one given line is wrong. Fill it in and find the error.Leveraged finance and LBO financingHardCarlyle GroupNew York · 2023
  2. 075A retailer's pari passu term loan lenders split: a 55% majority swaps into a new super-senior loan and adds new money, leaving the rest behind. Compute each group's recovery before and after the uptier.Liability management and refinancingHardRestructuringLeveraged finance
  3. 076A stressed borrower offers to swap its unsecured bonds, trading at 60, into new secured bonds at 75 of face. If 80% accept, how much debt goes, what do exchanging and holdout holders end up with, and why do holdouts matter?Liability management and refinancingHardRestructuringSyndicate desks
  4. 081An expressway operator wants to borrow against ten years of future toll collections. Size the issue at 1.5x cover, then show what a 20% traffic shortfall does to that cover.Structured finance and securitisationHardStructured creditCorporate banking
  5. 083An airline flies 180-seat aircraft at an 82% load factor and a cost per flight of Rs 9.6 lakh before aircraft financing. What fare breaks even, and can it service a Rs 800 crore aircraft loan if fares run 10% above that?Asset-backed, project and real-asset lendingHardBain CapitalBoston · 2024
  6. 088A holding company borrows Rs 1,000 crore to fund equity in its operating subsidiaries and relies on their dividends to pay interest. Work out double leverage and dividend cover, and judge the risk to its lenders.Capital structure decisionsHardCredit researchRating agencies
  7. 091Paper LBO with a revolver, a cash sweep and a PIK note: build the debt schedule for a packaging company bought at 8x and work out the sponsor's return.Leveraged finance and LBO financingHardCarlyle GroupNew York · 2023
  8. 092A steel company is in insolvency resolution. A bidder offers Rs 2,400 crore upfront plus Rs 600 crore deferred over three years. What is the bid really worth, and how might it be shared among secured, unsecured and operational creditors?Restructuring and recoveriesHardRestructuringIndian debt capital markets
  9. 096A lender makes three-year fixed-rate loans funded with one-year borrowings. Rates rise 150 basis points. What happens to net interest income, what is the duration gap, and how would you change the funding?Rates and hedgingHardRisk managementIndian debt capital markets
  10. 097Value a construction company and decide whether to lend to it: a Rs 9,000 crore order book and Rs 330 crore of EBITDA, but only Rs 420 crore of operating cash flow over five years against Rs 1,500 crore of cumulative EBITDA. It asks for a Rs 300 crore facility.Credit analysis and ratingsHardBain CapitalNew York · 2024

Company names and figures are illustrative.