TURKISH AIRLINES ASSIGNMENT Case Solution
The credit analysis is performed as below:
| Coverage Ratios | ||||
| EBITDAR/((Net) Fixed Charges + STD + CMLTD) (x) | 0.31 | 0.30 | 0.31 | 0.31 |
| EBITDAR/(Net) Fixed Charges (x) | 4.10 | 5.34 | 3.97 | 3.53 |
| EBITDA/(Net) Finance Expense (x) | 13.67 | 22.15 | 13.09 | 10.53 |
| EBIT (Before Non-Op Items) Ratios | ||||
| EBIT Margin (Before Non-Operating Items) | 6.34% | 7.49% | 6.28% | 5.53% |
| EBIT/Finance Expense (x) | 5.63 | 7.02 | 5.51 | 4.67 |
| EBIT/(Net) Finance Expense (x) | 8.67 | 16.50 | 7.90 | 5.98 |
| Returns | ||||
| Return on Assets (EBIT/Ave Total Assets) | 6.71% | 7.89% | 6.83% | 6.01% |
| Return on Total Capital (EBIT/(Ave Adj (Net) Debt+Equity) | 6.71% | 7.89% | 6.83% | 6.01% |
| Return on Equity (Net Income/Ave Equity) | 18.15% | 20.38% | 11.34% | 23.43% |
In order to know the future financing need, the company’s current orders and their prices and the quantities ordered are needed which are summarized as below:
The company is proposing to add three brand new Airbus A330-300 and 03 brand new Boeing 777-300 ER which would be financed using the 12 year maturity and the interest rate of 3%. The overall worth of the loan is USD 328 million.
| million USD | ||||
| Ordered | Prices/ | Total Price | ||
| Airbus A321 | ||||
| Airbus A321-200 | 1 | 113.7 | 113.7 | |
| Airbus A330 | ||||
| Airbus A330-200 | 1 | 229 | 229 | |
| Airbus A330-300 | 9 | 253.7 | 2283.3 | |
| Boeing 737 | ||||
| Boeing 737-800 | 3 | 96 | 288 | |
| Boeing 777 | ||||
| Boeing 777-300 | 6 | 339.6 | 2037.6 | |
| Total | 20 | 4951.6 |
Prepare a single lender loan proposal and amortization schedule using the spreadsheet worked in class
- bonus -Create a structured financing with sell down structure justifying the size and pricing of each tranche
Lender Loan Proposal
Senior Management Profiles
The company is working under the management of 745 managers who are efficiently utilizing the resources of the company to perform better as compared to their competitors. It can be concluded from the company’s profitability position which shows a positive upward trend if taken from the history. Mr. Lynda is responsible for the competitive strategy of the overall business. He has a strong positive history in creating value for the shareholders. Mr. Birkan Guneralp is the IOCC Manager in the company. Under the strong management with their accurate educational background, the company’s chances of growth are 100%....................
This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.
Related Case Solutions & Analyses:
Innovation at Progressive (A): Pay-As-You-Go Insurance
Polands A2 Motorway
Phuket Beach Hotel: Valuing Mutually Exclusive Capital Projects
Rebuilding the New Orleans Public Schools: Turning the Tide (Abridged)
Negotiation Self-Assessment
Toyota: Repositioning the Brand in Europe (A)
Virgin Active Gym: The Best Place To Shape Your Life
The Nissan Corporation
Aldi Brand
Target Corporation: The Canadian Decision
