committed $6 billion in bridge loans and to underwrite the entire $17.5 billion in debt financing, plus $1.5 billion in credit lines. 2. The leveraged finance group is responsible for making the bridge financing commitment and support the Freeport-McMoran to make a bid for the Phelps Dodge. Also, this group is responsible to analyses the new debt structure, the consequences on credit ratings and examines the possibility of sell the debt to other investors. 3. The principal risk of the banks is persuading
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Topic Financial crises of 2008 Presented to presented by Date Table of contents Introduction causes and factors US government actions to solve the crises Analysis and opinion regarding the likelihood of another financial crisis Introduction: The current financial crisis started in the US housing market in 2007. The crisis spread across the whole world and brutally
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underwrite and book-run all of the financings because together they committed $6 billion in bridge loans and to underwrite the entire $17.5 billion in debt financing, plus $1.5 billion in credit lines. This created significant risk by aligning the interests of FCX and the two firms in terms of placing the debt and credit with other banks and institutional investors. Because this commitment was critical in facilitating the M&A transaction, FCX gave all of the book-running and M&A business to these
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1) Evaluate Nokia’s strategy and historical operating performance. Nokia, the global leader in mobile communications, competes in a fast moving and highly competitive mobile phone industry. Threatened by intense competition from iPhone, Android phones on the high end and rival products in the larger, lower-priced segment as well, Nokia’s strategic plan is to partner with Microsoft to build a new ecosystem with Windows Phone (WP) serving as Nokia’s primary smartphone platform while its own Symbian
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to create a secondary market for the underlying receivables or other various illiquid assets. Securitisation is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations and selling said consolidated debt as bonds, pass-through securities, or collateralized mortgage obligation (CMOs), to various investors. The principal and interest on the debt, underlying the security, is paid back to the various
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it does not issue corporate bonds. This is most likely because AAWW defaulted on its bonds when it declared Chapter 11 bankruptcy in 2004. AAWW’s corporate bond rating is assumed to be a “B” based on the interest rates that it is paying on the rest of its debt. UPS is lower than FDX, which is reflective of UPS having a higher credit rating, which leads to a lower interest rate on its bonds. I would use the DCF approach because it reflects the dividend that is paid, which is a direct cost to
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Singapore. However, in future, Chinese authorities may allow offshore RMB transactions elsewhere, and more euro-RMB bonds1 issued in other financial centers could soon appear. A comment answering investors’ frequently asked questions on our approach to rating both types of these bonds will follow within a few weeks. The progressive internationalization of the RMB will facilitate growth in Hong Kong of both kinds of RMB-denominated bonds. In particular, the rapidly expanding volume of the city’s deposits
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benefits from incredibly high margins with a gross margin of 80% compared to the tobacco industry mean of 28%. Due to the high levels of cash generation and a historically conservative debt policy, UST has historically been able to maintain very high credit ratings. UST is currently planning to reinstate a previously approved stock repurchasing plan that would involve borrowing 1 billion dollars over five year to repurchase stock. Considering the idea of recapitalizing, the decision to borrow 1 billion
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but recommends 6% for OneMBA calculations e. For the cost of debt calculation Joanna used current interest payments which deviates from BEHH, Chapter 10 and class notes as all these stipulate that market yield of government bonds + estimated credit risk spread should be used. f. The use of beta differs between the three in that Joanna used the average beta, chapter 10 advises using published betas and in class we calculated the beta value. g. Redeemable preferred stock not included
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workforce, capacity for innovation and involvement in R&D, beneficial administrative and regulatory environment and high quality of its energy mix. Positive impacts of reforms already tangible The competitiveness and employment tax credit (CICE) in force since January 1, 2013 is already actively reducing labor costs. The French National Institute for Statistics and Economic Studies (INSEE) has reported a fall in the labor cost index in the first quarter of 2013 and has estimated that
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