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 41–50 of 100
  1. 041Mervaka Retail, a footwear and apparel chain, reports EBITDA of Rs 500 crore and debt of Rs 600 crore, but pays Rs 200 crore a year of rent on long store leases. Which credit metrics would you look at, and what is leverage on a lease-adjusted basis?Credit analysis and ratingsHardTruist SecuritiesAtlanta · 2024
  2. 042Compute the borrowing base for Samvera Distributors: receivables of Rs 400 crore and inventory of Rs 300 crore across raw material, work in progress and finished goods, against a Rs 350 crore asset-based line. What is available?Asset-backed, project and real-asset lendingCoreTruist SecuritiesAtlanta · 2023
  3. 043A sponsor is buying Tarvik Education at 9x EBITDA of Rs 150 crore with 5x debt, and the cost of debt rises from 9% to 11% before signing. How does that move the sponsor's IRR, and how much less must it pay to keep a 20% IRR?Leveraged finance and LBO financingHardHoulihan LokeyLos Angeles · 2025
  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. 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
  6. 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
  7. 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
  8. 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
  9. 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
  10. 050Anvayana Home Loans wants to sell Rs 500 crore of home loans. Compare a direct assignment at the pool yield with a pass-through structure needing 10% credit enhancement: what does each do to its income, and how much risk does it really shed?Structured finance and securitisationCoreStructured creditIndian debt capital markets

Company names and figures are illustrative.