Based on your expected ratings what are the best comparable companies for

Based on your expected ratings what are the best

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3. Based on your expected ratings, what are the best comparable companies for pricing the Roche bond deal? Which deals are not good comparables and why? 4. What are your estimates of investors’ required credit spreads (in basis points) for the Roche 5-year, 10-year, and 30-year U.S. dollar bonds? What are the implied yields to maturity for each tranche? 4 HIGH YIELD DEBT Case: Rockwood Specialties: High-Yield Debt Issue Readings: The High-Yield Debt Market (Casebook) Assignment Questions: 1. What are the main strengths and weaknesses of Rockwood’s proposed high- yield debt deal? 2. How does the refinancing help Rockwood restructure its balance sheet? 3. How are the company and Merrill Lynch attempting to address the weaknesses perceived by the rating agency? 4. Why do some high-yield bonds have call features? Why are these deals priced 5. Based on the comparables, what rating and coupon do you think Rockwood will receive on its debt?
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1. What is the rationale for a private company to go public? 2. What regulatory filings are required? What is ‘due diligence’? What is the ‘quiet period’? 3. What is the role of the underwriters? How are the underwriters paid when a company goes public? 4. What is an underwriting syndicate? ‘book building’? a‘greenshoe’? 5. What is the difference between a marketed deal and a bought deal? 6. What are the key challenges to Snap’s business model and economic proposition? 7. What is driving Snap’s decision to go public? What are market conditions for an IPO? How does Snap compare to other technology companies at the time of their IPOs? 8. Why might Snap choose to stay private longer? 9. Using the supplied worksheet, what is the DCF valuation of Snap on a per share basis? What sensitivities would you run in order to see the range of values? What is the WACC that you would use for Snap assuming a long bond rate of 3.16%? 10. Based on your analysis did Snap underprice its IPO? Do you agree with their pricing strategy?
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