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 81–90 of 100
  1. 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
  2. 082Three borrowers ask for similar loans: a steady dairy at 2.5x, a fast-growing cold chain at 3.5x with one big contract, and a seasonal resort at 3.0x. What do you look for, and which do you lend to first?Credit analysis and ratingsWarm upHPS Investment PartnersNew York · 2021
  3. 083An airline flies 180-seat aircraft at an 82% load factor and a cost per flight of Rs 9.6 lakh before aircraft financing. What fare breaks even, and can it service a Rs 800 crore aircraft loan if fares run 10% above that?Asset-backed, project and real-asset lendingHardBain CapitalBoston · 2024
  4. 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
  5. 085A software company with Rs 400 crore of recurring revenue and thin EBITDA offers a senior loan, mezzanine with warrants, or equity. Where in the capital structure would you invest?Private credit and direct lendingCoreHPS Investment PartnersNew York · 2021
  6. 086Can debt ever be more expensive than equity? A distressed company is offered a rescue loan at 16% plus a 3% fee plus warrants for 10% of the equity, or a rights issue at a 30% discount. Which money costs more?Leveraged finance and LBO financingCoreTD SecuritiesNew York · 2025
  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.