A vice-president of a hedge fund must determine whether his fund will consider taking a 5 % equity stake in Premier Foods Plc. At the time of the case, Premier, a publicly listed U.K. food and beverage business, was heavily indebted following a period of aggressive acquisition increase.
Furthermore, interest rate swaps had been issued by Prime Minister on most its own debt. As the fiscal catastrophe unraveled, interest rates dramatically dwindled, and Premier's interest rate swaps appeared to be further draining the company.
Opposing this backdrop, the case sets its supreme aim, which would be to model the vice president's analysis of the organization’s debt, interest rate swaps, caps and floors prior to deciding whether to put money into Premier.
Premier Foods Plc Interest Rate Swaps Case Study Solution
PUBLICATION DATE: October 31, 2013 PRODUCT #: W13462-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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