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 1–8 of 8 · filtered from 100Clear filters
  1. 013Dhruvika Logistics has a Rs 400 crore bank loan at a floating 9.8% and can issue a five-year bond at a fixed 8.9%. Prepaying the loan costs 0.3%. Should it switch, and what risk changes?Liability management and refinancingWarm upCorporate banking
  2. 019Aurvika Telecom faces Rs 800 crore, Rs 1,500 crore and Rs 400 crore of maturities over the next three years, with Rs 300 crore of cash and Rs 250 crore of free cash flow a year. Lay out the refinancing plan and say which maturity to address first.Liability management and refinancingCoreCorporate bankingSyndicate desks
  3. 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
  4. 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
  5. 053A steel company with surplus cash can buy back its expensive bonds at a premium through a tender offer. Is paying 104 for 9.5% bonds worth it when the cash earns 7%?Liability management and refinancingCoreSyndicate desksCorporate banking
  6. 075A retailer's pari passu term loan lenders split: a 55% majority swaps into a new super-senior loan and adds new money, leaving the rest behind. Compute each group's recovery before and after the uptier.Liability management and refinancingHardRestructuringLeveraged finance
  7. 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
  8. 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

Company names and figures are illustrative.