The origination team of a global investment bank

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You work in the Origination team of a global investment bank. You have been in regular contact with the finance team at British Airways plc, which your bank hopes to win as a client. You know that BA is planning the acquisition of four new Airbus A380 aircraft with a list price of $390 million each. You wish to win a mandate from BA for one or more bond issues to finance the purchase of these aircraft. Your task is to consult the BA annual report and accounts, available on Yahoo Finance or other public sources, and write a report analysing the advantages and disadvantages of three types of financing: a) A syndicated loan b) A bond issue c) A medium term note programme You should include the following topics in the report: 1. The overall cost of financing 2. The repayment structures 3. Which type of financing would involve the most favourable terms and conditions for BA (excluding the cost factor) 4. The investors/lenders that would be used for each type of financing 5. Any other factors that BA should consider.

Reference no: EM131091657

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