X, a well known American based corporation raised usD 800 million through a syndicated loan, aranged by the lead bank, HIBC UK, one of the largest banking organisations in the world |The proceeds of the loan would Finance ajoin t venture with an Australian company, y in a tibanium mining project. The Australian |company hos been in the mining indusbry for decades , has a good worldwide reputation and asound financial track vecord. 1tis usted on the Australian Securities fschange in sydney. an d financial semles witll prouide the The main terms of the joint ven ture ave thent X Financial support and y the technological knowhou, human vesources, local enpertise of theterrain and knowledge of Local legislation. The projert will eam ibs profits at the endofthe 5th Details of the sy ndicated loanare : Matunity =5 y ears interest rate = LIBOR (curently 1•l:) Syndiceation Fees = 2-5 |• Calcul ate the 10an proceeds vecsivad by * from the syndicated loan and the interest paya ble perannum. year. s pread = 150 basis points · %3D %3D Disuss the possible reasons why X has opted fora syndicated loan joe in London rather than in America, and 1oan was preferrd to orher metho ds of fitemsan tong debt funding. Chu Eaplain 4 risky that might be associated with this jolnb venture· why the syndicated
X, a well known American based corporation raised usD 800 million through a syndicated loan, aranged by the lead bank, HIBC UK, one of the largest banking organisations in the world |The proceeds of the loan would Finance ajoin t venture with an Australian company, y in a tibanium mining project. The Australian |company hos been in the mining indusbry for decades , has a good worldwide reputation and asound financial track vecord. 1tis usted on the Australian Securities fschange in sydney. an d financial semles witll prouide the The main terms of the joint ven ture ave thent X Financial support and y the technological knowhou, human vesources, local enpertise of theterrain and knowledge of Local legislation. The projert will eam ibs profits at the endofthe 5th Details of the sy ndicated loanare : Matunity =5 y ears interest rate = LIBOR (curently 1•l:) Syndiceation Fees = 2-5 |• Calcul ate the 10an proceeds vecsivad by * from the syndicated loan and the interest paya ble perannum. year. s pread = 150 basis points · %3D %3D Disuss the possible reasons why X has opted fora syndicated loan joe in London rather than in America, and 1oan was preferrd to orher metho ds of fitemsan tong debt funding. Chu Eaplain 4 risky that might be associated with this jolnb venture· why the syndicated
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:X, a well known American based corporation raised usD 800
million through a syndicated loan, aranged by the lead bank,
HIBC UK, one of the largest banking
organisations in the world
|The proceeds of the loan would Finance ajoin t venture with an
Australian company, y in a tibanium mining project. The Australian
|company hos been in the mining indusbry for decades , has a good
worldwide reputation and asound financial track vecord. 1tis usted
on the Australian Securities fschange in sydney.
an d financial semles
witll prouide the
The main terms of the joint ven ture ave thent X
Financial support and y the technological knowhou, human
vesources, local enpertise of theterrain and knowledge of Local
legislation. The projert will eam ibs profits at the endofthe 5th
Details of the sy ndicated loanare :
Matunity =5 y ears
interest rate = LIBOR (curently 1•l:) Syndiceation Fees = 2-5 |•
Calcul ate the 10an proceeds vecsivad by * from the syndicated
loan and the interest paya ble perannum.
year.
s pread = 150 basis points ·
%3D
%3D
Disuss the possible reasons why X has opted fora syndicated
loan joe in London rather than in America, and
1oan was preferrd to orher metho ds of fitemsan tong debt funding. Chu
Eaplain 4 risky that might be associated with this jolnb venture·
why the syndicated
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