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 31–40 of 100
  1. 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
  2. 032Pitch a 10-year rates trade to a fixed income fund: the 10-year government bond yields 7.10%, the 2s10s curve is 40 basis points, and you expect the central bank to ease. Size a DV01-neutral steepener and set the stop.Rates and hedgingCoreBank of AmericaLondon · 2025
  3. 033Korvath Industries plans a Rs 1,000 crore 10-year bond in three months and fears rates will rise. Which derivative would you use to lock the rate, and what happens if government yields rise 40 basis points and its credit spread widens 20?Bond issuance and executionHardGoldman SachsLondon · 2025
  4. 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
  5. 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
  6. 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
  7. 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
  8. 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
  9. 039Nandavan CLO I holds Rs 500 crore of loans against class A notes of Rs 330 crore and class B of Rs 55 crore, with an A/B overcollateralisation trigger of 125%. After a default and a CCC haircut, does the test fail, and how much cash is diverted from the equity to cure it?Structured finance and securitisationHardNomuraNew York · 2026
  10. 040Velkora Warehousing Park has gross potential rent of Rs 48 crore, 8% vacancy and operating costs of 20% of effective income. Get to value at an 8% cap rate, then size a refinancing loan at 60% loan-to-value and 1.4x debt service cover. Which test binds?Structured finance and securitisationCoreInvescoNew York · 2025

Company names and figures are illustrative.