Reading a case and answer some question
Case: "Chase;s Strategy for Syndicating the Hong Kong Disneyland Loan" by Matt Harris, Managing Director, Chase Securities.
1. How does project finance work - do you believe its ‘non-recourse' character - what types of projects qualify for project finance?
2. What is the objective of the Chase syndication team in Hong Kong - are they underwriters (investment bankers) or lenders (commercial bankers)?
3. Compare and contrast the term sheet data to the peer data shown in the case.
4. As Chase, structure the loan syndication, citing the specific number of participants in each of the layers.
5. As Disney, would you sign the standard commitment letter? Which parts might concern you and why? As Chase, which parts would you change or remove?
6. Be aware of differences and risk/return aspects of general syndication versus sub-underwriting.