Toggle Nav
My Cart
English
Español
Menu
Account
  • Log in / Register
    • Language
    English
    Español

    Jaguar Land Rover plc: Bond Valuation (Spanish version)

    S. Veena Iyer

    Spanish , English

    • Reference: IVEY-W28507

    • Year: 2015

    • Number of pages: 7

    • Geographic Setting: United Kingdom

    • Publication Date: Jul 31, 2015

    • Source: Ivey Business School (Canada)

    • Type of Document: Case

    Grouped product items
    Format Language Reference Use Qty Price Preview
    pdf Spanish IVEY-W28507
    As low as €8.20
    		Preview

    You already have a subscription
    To order please contact the person in charge of academic purchases in your university.
    You'll be able to order once your profile has been validated.

    Description

    Jaguar Land Rover Automotive plc, a wholly owned subsidiary of the Indian company Tata Motors Limited, announced bond issue worth US$500 million. The proceeds of this issue were to be used to refinance costlier outstanding bonds. The company was able to raise new debt at substantially lower interest rates than its outstanding debt as a result of its sustained good performance, which led to strong company fundamentals and improved credit ratings. Students will analyze the various motivations for such a financial strategy, whether it will lead to cost savings or cash flow savings and, if so, the extent of the savings.

    Learning Objective

    This case can be used in a Corporate Finance core course or in an elective course on Investment Management, Securities Analysis or Securities Valuation in graduate and executive management programs.

    Keywords

    bond issue cost of capital Refinancing