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 51–60 of 66 · filtered from 100Clear filters
  1. 076A stressed borrower offers to swap its unsecured bonds, trading at 60, into new secured bonds at 75 of face. If 80% accept, how much debt goes, what do exchanging and holdout holders end up with, and why do holdouts matter?Liability management and refinancingHardRestructuringSyndicate desks
  2. 077You buy mortgage-backed pass-through bonds at 102. How do their average life and yield change if borrowers prepay 10% a year against 25% a year?Structured finance and securitisationCoreStructured creditFixed income asset management
  3. 078A developer needs bondholder consent to sell a subsidiary that a covenant protects, and offers a 0.5% fee for approval. What does it cost the issuer, how should a bondholder decide, and what if the sale weakens the credit?Liability management and refinancingCoreSyndicate desksRestructuring
  4. 079A contractor buys 50 excavators with 90% loans repaid in equal instalments over five years, and the machines lose 30% of their value in year one. Is the loan ever bigger than the collateral, and when?Asset-backed, project and real-asset lendingCoreCorporate bankingPrivate credit
  5. 081An expressway operator wants to borrow against ten years of future toll collections. Size the issue at 1.5x cover, then show what a 20% traffic shortfall does to that cover.Structured finance and securitisationHardStructured creditCorporate banking
  6. 084Size the maximum debt for a port under three limits: 5.0x leverage, 1.35x debt service cover over 12 years at 9%, and 60% loan to value. Which one binds?Debt capacity and loan structuringCoreCorporate bankingPrivate credit
  7. 087A debut hospital issuer would be rated A on its own. A parent guarantee costing 0.5% a year would lift it two notches and save 70 basis points of coupon. Is the guarantee worth buying on a Rs 400 crore five-year bond?Bond issuance and executionWarm upSyndicate desksRating agencies
  8. 088A holding company borrows Rs 1,000 crore to fund equity in its operating subsidiaries and relies on their dividends to pay interest. Work out double leverage and dividend cover, and judge the risk to its lenders.Capital structure decisionsHardCredit researchRating agencies
  9. 089A sponsor asks for 6x leverage at 11% on a schools business with EBITDA of Rs 100 crore, maintenance capex of Rs 30 crore and cash taxes of Rs 10 crore. Is 6x serviceable, and what is the most you would lend?Leveraged finance and LBO financingWarm upLeveraged financePrivate credit
  10. 090A wind power company can price a green bond 8 basis points tighter than a plain bond, but the label costs Rs 40 lakh a year in verification and reporting on a Rs 500 crore issue. Does the green label save money?Bond issuance and executionCoreFixed income asset managementSyndicate desks

Company names and figures are illustrative.