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 15 · filtered from 100Clear filters
  1. 020The syndicate desk is left with Rs 200 crore of unsold Pavanjit Steel seven-year bonds overnight and hedges with government bond futures. Overnight, government yields fall 10 basis points and Pavanjit's spread widens 15. What is the hedged P&L?Rates and hedgingHardSyndicate desksRisk management
  2. 025Tejomaya Glass is reorganised at an enterprise value of Rs 900 crore: Rs 400 crore of new debt and Rs 500 crore of equity. Seniors owed Rs 700 crore get all the new debt and 60% of the equity; juniors owed Rs 400 crore get 40%. What does each class recover, and is the split fair under absolute priority?Restructuring and recoveriesHardRestructuringCredit research
  3. 037Mahiraj Facility Services reports EBITDA of Rs 80 crore, but the sponsor's adjusted EBITDA is Rs 100 crore after add-backs, so Rs 550 crore of debt is marketed as 5.5x. What is true leverage, and how would you cap the add-backs?Private credit and direct lendingHardPrivate creditLeveraged finance
  4. 044A second lien holder in Vrishank Motors buys the whole senior loan at 70 to control the restructuring. Senior debt is Rs 500 crore, second lien Rs 300 crore, and it values the business at Rs 550 crore. Work out the loan-to-own economics.Restructuring and recoveriesHardRestructuringPrivate credit
  5. 049Taranjot Solar's cash flow available for debt service rises from Rs 80 crore to Rs 110 crore over 15 years. Compare the debt it can raise with a level annuity repayment against a repayment sculpted to a constant 1.3x cover, at 9%.Debt capacity and loan structuringHardCorporate bankingIndian debt capital markets
  6. 059A consumer company can target a AA rating with less debt or an A rating with more. Compute the WACC under each and decide which target to adopt, allowing for a downturn.Capital structure decisionsHardCorporate bankingRating agencies
  7. 063Rating case: a tower company plans a debt-funded acquisition that takes leverage past the agency's downgrade trigger. What rating action follows, and what could the company do to avoid it?Credit analysis and ratingsHardRating agenciesCredit research
  8. 070A hydro project suffers a 20% cost overrun and a one-year delay. Compute the extra interest during construction, the funding gap and who funds it, and the effect on debt service cover.Asset-backed, project and real-asset lendingHardCorporate bankingIndian debt capital markets
  9. 072Overnight case study: an aviation services company offers a second lien loan behind a larger first lien. Build base and downside cases, compute value cover at 6x and 4x EBITDA, and give an invest or pass view.Private credit and direct lendingHardPrivate creditCredit research
  10. 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

Company names and figures are illustrative.