Ivey Publishing
Jaguar Land Rover plc: Bond Valuation
Product Number:
9B15N012
Publication Date:
07/31/2015
Revised Date:
07/31/2015
Length:
6 pages (2 pages of text)
Product Type:
Case (Pub Mat)
Source:
MDI/Ivey
Jaguar Land Rover Automotive plc, a wholly owned subsidiary of the Indian company Tata Motors Limited, announced bond issue worth US$500 million. The proceeds of this issue were to be used to refinance costlier outstanding bonds. The company was able to raise new debt at substantially lower interest rates than its outstanding debt as a result of its sustained good performance, which led to strong company fundamentals and improved credit ratings. Students will analyze the various motivations for such a financial strategy, whether it will lead to cost savings or cash flow savings and, if so, the extent of the savings.
Learning Objective:
This case can be used in a Corporate Finance core course or in an elective course on Investment Management, Securities Analysis or Securities Valuation in graduate and executive management programs.
Issues:
Disciplines:
Finance,  International
Industries:
Manufacturing
Setting:
United Kingdom, Large, 2015
Intended Audience:
MBA/Postgraduate
Price:
$4.25 CAD / $4.25 USD Printed Copy
$3.75 CAD / $3.75 USD Permissions
$3.75 CAD / $3.75 USD Digital Download
Associated Materials
Translations: Simplified Chinese (6 pages)
You Might Also Like...

Save In: