The CFO of UniHost Corporation is needs to raise funds. UniHost is undergoing an expansion program in which it is focusing on development, syndication, franchising, and management of motels alongside hotels as well in all parts of Canada. Majority of the properties in consideration were flagged under Quality and Comfort brands. UniHost needs funds in tone of $52 million in order to make repayments of their bridge loan facility and gradually finance various chances of expansion. Funding options contained high yield debt, convertible bonds and equity. The CFO had to determine on the type and construction of the funding.
This study creates potential dialogues over a number of problems, mainly the public funding procedure in Canada, funding strategy (i.e. selection of the form of funding from the perspective of finances), optimization of capital structure, and affect of choices related to financing of the whole business. With respect to the debt options, data is supplied which helps in evaluation of the choice of debt maturity, bond covenants, and bond rating services.
Publication Date: 06/08/1999
This is just an excerpt. This case is about Finance
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