Finance

Your write-up should begin with an opening paragraph that defines the main problem in the case
and your recommended solution. The remainder of your paper should support your conclusion
and recommendations. This support should be based on your definition of the problem and
inferences that you draw from the facts of the case. Structure is important for your argument to
be lucid and transparent. You may use a bullet point format if you want, but be careful not to be
so cryptic that your argument becomes unintelligible. Also, you may want to use exhibits to
support your argument with some quantitative analysis.
You are free to draw on outside sources as well, but if you do you must be careful to include
footnotes and references.
The grading will be based on:
Quality of the problem diagnosis: Have you defined the problem and identified the most important
impediments to its solution?
Quality of analysis: Have you analyzed the pertinent issues correctly and avoided obvious
repetition of facts in the case?
Quality of recommendations: Have you offered specific plans of action and backed these up with
strong arguments?
Writing: Do you present the material in a logical, clear and concise way?
Below you will find a set of questions to guide your analysis. You should address all of these
questions in your analysis. You must make your argument succinctly. I am going to strictly
enforce a maximum length of 8 pages of text (12 point font; 8.5″x11″ paper; standard margins),
plus supporting graphs, figures or tables.
In preparing the case, be sure to read the Case Appendix carefully, which gives a brief overview of
syndicated lending. Also, read the “A Guide to the Loan Market” by S&P, which is posted at the
course website.

Questions
1. How should Chase have bid for the loan mandate? Consider the following options: no bid, bid
to win, bid to loose. Evaluate the potential advantages and disadvantages associated with each
strategy. What are the risks of the loan to Chase? What are the potential rewards of the loan to
Chase? What actually happened with the loan mandate? How and why?
2. Would you recommend that Disney sign Chase’s standard commitment letter? Which parts
might concern you (as Disney) and why? As Chase, which part might you alter or remove?
3. What syndication strategy would you recommend for the loan? Think in terms of the
number of tiers, commitment amounts and fees for each tier, determination of the invitation
list, nationality of and number of banks, final hold positions, sub-underwriting vs. general
syndication.