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 66 · filtered from 100Clear filters
  1. 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
  2. 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
  3. 022Panchalika Traders wants a Rs 5 crore loan against property valued at Rs 9 crore. Business cash flow is Rs 1.1 crore a year and the loan is for 10 years at 10.5%. Check loan to value and debt service cover and give a decision.Asset-backed, project and real-asset lendingWarm upCorporate bankingIndian debt capital markets
  4. 023Timed written test: from Kanvika Cement's income statement and balance sheet, compute interest cover, debt service cover, fixed charge cover, net leverage and the current ratio, and say which one breaches the lender's policy.Credit analysis and ratingsWarm upCorporate bankingRating agencies
  5. 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
  6. 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
  7. 026Ushmita Auto Parts can discount its invoices on a trade receivables platform at 8.5% a year, or accept its buyers' offer of a 2% discount for paying on day 10 instead of day 60. Which is cheaper money?Asset-backed, project and real-asset lendingWarm upCorporate bankingIndian debt capital markets
  8. 028Hemantra Agro has sales of Rs 1,200 crore, inventory of 90 days, receivables of 45 days and payables of 30 days. What working capital does it carry, and how large a cash credit line would a bank allow at a 25% margin?Debt capacity and loan structuringWarm upCorporate bankingIndian debt capital markets
  9. 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
  10. 031Lakshaka Power's bonds trade at 80. It plans to spend Rs 160 crore of cash buying back Rs 200 crore of face value in the market. What does it gain, what happens to leverage, and what liquidity does it give up?Liability management and refinancingWarm upCorporate bankingRestructuring

Company names and figures are illustrative.