STRUCTURING LOAN SYNDICATES A CASE STUDY OF THE HONG KONG DISNEYLAND PROJECT LOAN

A wagon on a side street has got its wheels ground into the snow bank at the side of the narrow cleared way. But we did see her on the Rhine; she was the most disgusted traveler, and seemed to be in very ill humor with her maid. Although Disney is an impor-tant global client, the deal did not seem that attrac-tive to us initially. Chase shall be entitled, after consultation withDisney and the Borrower, to change the structure,terms, amount, or pricing of the Facility if the syndi-cation has not been completed due to a change in theHong Kong Dollar market and if Chase determines,after consultation with Disney and the Borrower,that such changes are advisable to ensure a success-ful syndication of the Facility. If anything, we thought our fee might be onthe high end, but we didnt feel bad about this fortwo reasons.

Sec-ond, if properly marketed, borrowers viewed theup-front fees in terms of their annual cost, not thenominal first-year cost. For thisreason, syndicated lending can be viewed as anintermediate form of financing, replete with interest-ing governance and structuring issues. Next, Chase had to select a target lender group,a decision that depended on the characteristics of thelocal market and three interrelated issues: As academics, we needto recognize this continuum and the consequencesof various ownership structures, as we have donewith equity ownership, and begin to develop the next generation of theoretical models. Esty and Gregory Saldutte. To read writing my essay websites daily routine in english the “Arabian Nights” or the “Bhagavad-Gita” is a sort of dissipation; upon the unhackneyed mind of the 2 page essay example jsf child it leaves a reactionary sense of depression. Because many people find the A1 protein difficult to digest, and that protein may be related to other health problems e.

I bounded some considerable distance away from the object before me.

structuring loan syndicates a case study of the hong kong disneyland project loan

In terms ofthe five criteria for determining success, Chaseappears to have met two or three of them dependingon ones assessment of the criteria: ManagingDirector Matt Harris described their logic:.

See below for further information. Had made the mistake of getting up so early that in the deep Washington stillness of half past seven we were scared to run the water for our baths for fear of rousing the sleeping hotel to angry tumult. Conceded that this professional point of view has been rightly emphasized, yet before the acted drama can rank as literature, or even hope to hold possession of the stage itself for more than a season, it must stand a further test.

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Hong Kong Disneyland Project Loan by Kiril Korbut on Prezi

The size ofa banks commitment is a matter of internal policyand varies based on factors such as the size of thebank, its internal credit policies on exposure to theparticular client, country, or industry, and specificloan terms.

Here, Isimply intend to illustrate how syndicate structureaffects compensation and exposure. It might also set Chase apart from other banks thatwere unable to commit to underwrite the full amount. They wanted a year term, which wasa potential stumbling sttucturing given that most banksprefer maturities of less than five years on emergingmarket loans.

Thealternative is a best efforts bid in which the leadarranger agrees to underwrite some portion of theloantypically the amount it is prepared to hold onits own balance sheetand attempts to place theremainder in the bank market.

Here, Chase underwritesthe full loan amount.

structuring loan syndicates a case study of the hong kong disneyland project loan

As the solemandated bank, we knew we were going to makemore than we had initially expected. Mostprevious academic research into debt policy hasfocused on such topics as determining an optimalcapital structure, choosing between private bankdebt or private placements and public bonds, orselecting among various loan features such as shortvs.

Print and online-only rates are also available see below. First, a prospectiveborrower selects a lead arranger to advise andmanage the syndication process.

First, it shows the importance of two kindsof banking relationships. Soon be back at work. Participatingbanks, those interested primarily in generating loanassets while staying within regulatory constraints onleverage and loan size, seek to diversify creditexposures to particular borrowers, industries, orcountries as well as to make loans in markets wherethey lack origination capabilities.

On the morning of lawyer on word agriculture essay the fourth, Essay topics on knowledge management at sunrise, I died. While itmight have been possible to squeeze the fees andpay 40 basis points for Lead Manager commit-ments and 60 basis points for Arranger commit-ments, Chase decided to go with higher compen-sation to guarantee a successful syndication.

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structuring loan syndicates a case study of the hong kong disneyland project loan

The ‘Get Big Fast’ Strategy. From the borrowers perspective, smaller syndicatesensure greater confidentiality, concentrated votingcontrol, and administrative convenience.

STRUCTURING LOAN SYNDICATES: A CASE STUDY OF THE HONG KONG DISNEYLAND PROJECT LOAN

For example, one caninterpret the heavy oversubscription as an indica-tion that either Disney overpaid Chase for theunderwriting risk or that Chase overpaid themarket. Total Commitment for all banks: Disney instructed each bank to submit finalproposals by Disneylsnd 19th.

Lender compensation comes in three forms.

In selecting a final hold position for risky loans,a bank must evaluate two sets syndicahes conflicting objec-tives. Your very warm commendation of the specimen which I gave projech my “Journal of a Tour to the Hebrides,” of my being able to preserve his conversation in an authentik and lively manner, which opinion the Publik has confirmed, was persuasive essay examples in apa format the best encouragement for me to persevere in my purpose of producing the whole of my stores.

Structuring Loan Syndicates: A Case Study of the Hong Kong Disneyland Project Loan

Cite View Details Purchase Related. Thissection describes several of these key issues and thetrade-offs Chase faced in designing a syndicationstrategy for the loan.

Viewed from thisperspective, Chase erred on the side of conserva-tism. Second, the Hong Kong Disneyland project,like all projects, had idiosyncratic features that. The fees offered to each syndicate tier. Rather than risking its reputation by leadingan undersubscribed or failed syndication, Chasechose to pay larger fees to a larger investor bankgroup to ensure the success of the syndication. For loans de-nominated in other currencies, bankers sometimesuse local interest rates.

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