MiniCase04_Ch07 - Chapter 7 Mini Case 4: Financing S&S...

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Chapter 7 Mini Case 4: Financing S&S Air’s Expansion Plans with a Bond Issue Mark Sexwale and Thandi Shilowa, the owners of S&S Air have decided to expand their operations. They instructed their newly hired financial analyst, Chris Gumede to enlist an underwriter to help sell R20 million in new 10-year bonds to finance construction. Chris has entered into discussions with Danielle Ralston, an underwriter from the firm of Raines and Warren, about which bond features S&S Air should consider and what coupon rate the issue will likely have. Although Chris is aware of the bond features, he is uncertain as to the costs and benefits of some features, so he isn’t clear on how each feature would affect the coupon rate of the bond issue. You are Danielle’s assistant, and she has asked you to
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This note was uploaded on 06/18/2011 for the course FIN 521 taught by Professor Varney during the Spring '11 term at Andrew Jackson.

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