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 66 · 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. 035Sitanshu Pharma has a USD 100 million five-year loan and earns mostly in rupees. The rupee weakens 8%. What does that cost unhedged, and how does it compare with a hedge costing 2.5% a year?Rates and hedgingWarm upCorporate bankingSyndicate desks
  3. 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
  4. 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
  5. 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
  6. 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
  7. 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
  8. 046Sarvagya Pipes has Rs 400 crore of surplus cash. It can pay a special dividend or repay a 9.5% term loan. What does each do to leverage and earnings, and which would a lender prefer?Capital structure decisionsWarm upCorporate banking
  9. 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
  10. 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

Company names and figures are illustrative.