Solution-Efn analysis for east coast yachts

Efn analysis for east coast yachts

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Reference no: EM131117704

After Dan's EFN analysis for East Coast Yachts (see the Closing Case in Chapter 3), Larissa has decided to expand the company's operations. She has asked Dan to enlist an underwriter to help sell $45 million in new 30-year bonds to finance new construction. Dan has entered into discussions with Renata Harper, an underwriter from the firm of Crowe & Mallard, about which bond features East Coast Yachts should consider and also what coupon rate the issue will likely have. Although Dan is aware of bond features, he is uncertain as to the costs and benefits of some of them, so he isn't clear on how each feature would affect the coupon rate of the bond issue.
advantages and disadvantages:

security of bond
seniority of bond
presence of sinking fund
call provision with specific dates and prices
make whole call provision
positive covenants (also possible positive covenants)
negative covenants
conversion feature (publicly traded company)
floating rate coupon

Reference no: EM131117704

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Efn analysis for east coast yachts

Reference no: EM131117704

Reference no: EM131117704

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