Disney had to deal with one lead bank, reduced underwriting risk for chase, and possibly easier syndication given the sub-underwriter support. Drawing a motivation chart of the key players and their priorities from the case study description. Business environments are often complex and require holistic solutions.
This will make the deal more politically supportive for politicians who are willing it back up the plan. The Optimal Syndication Strategy Syndication is generally preferred when loan size is large and borrowers have strong operational and financial record, but Disney is a new face to the HK and Disney in France has some problems.
Strategy 1—Sole-mandated with sub-underwriting This strategy involves 4 tiers, 15 banks. Successful Chase would be the sole mandated lead arranger.
The general syndication exposure of 1, million is relatively high comparing with strategy 1. Esty; Michael Kane Publisher: SWOT analysis is a strategic tool to map out the strengths, weakness, opportunities and threats that a firm is facing. Focus on the following - Zero down on the central problem and two to five related problems in the case study.
Expected return of this strategy is relatively low. Chase was the pioneer in the use of market flex terms. As Disney would you sign the standard commitment letter? Standard Commitment Letter The standard commitment letter established by Chase for the Disneyland project would have the following terms: Strategy 3— Sole-mandated without sub-underwriting The third strategy for Chase, as the sole mandate, is to skip the step of sub-underwriting and directly start general syndication.
Chase invite as potential sub-underwriters which is interested banks a chance to participate. As Disney the following aspects of the proposal would be of concern: How should Chase have bid for the loan mandate?
You can use this history to draw a growth path and illustrate vision, mission and strategic objectives of the organization.
Strategy 3— Sole-mandated without sub-underwriting The third strategy for Chase, as the sole mandate, is to skip the step of sub-underwriting and directly start general syndication.
It was quite good time for loan syndication as there were good indications of market recovery and tightening of credit spreads which meant higher liquidity on the market. The scope of the recommendations will be limited to the particular unit but you have to take care of the fact that your recommendations are don't directly contradict the company's overall strategy.
You have to recommend business unit level recommendations. Once done it is time to hit the attach button. In some cases you will able to find the central problem in the beginning itself while in others it may be in the end in form of questions. Chase was plagued by two main factors.
A provision that allowed repayments to start as late as three years after opening. In our opinion 3rd option might be too risky by skipping sub-underwriting face and causing additional effort to promote a syndicated loan to 20 other banks by Chase alone.Hong Kong Disneyland Project Loan.
Profitability of Chase's strategy Hong Kong Disneyland Project Loan PROJECT SCHEDULE December First agreement Disney - HK Government Bad previous experience with Disneyland Paris Hong Kong International Theme Parks Limited H K T P Construct Own Operate Finance.
Dec 28, · I'm Lillian Ethan provide Chase's Strategy For Syndicating The Hong Kong Disneyland Loan Case Study Sample Harvard case Author by. Chase’s Strategy for Syndicating the Hong Kong Disneyland Loan (A) Essay Sample.
Q1. How should Chase have bid in the first round competition to lead the HK$ billion Disneyland financing? agronumericus.com ways to approach this deal. 1) bid to win, 2) bid to lose and3) no bid. Chase’s Strategy for Syndicating the Hong Kong Dis Words | 11 Pages.
FINA Case Study 1 Chase’s Strategy for Syndicating the Hong Kong Disneyland Loan (A)&(B) Bid Strategy of the First Round The first round bid was to show its commitment and price, while detailed proposal would be submitted after being shortlisted.
In latethe Walt Disney Co. and the Hong Kong government agreed to develop Hong Kong Disneyland, a HK$28 (U.S.$) billion theme park and resort complex planned to open in late In Decemberthe Walt Disney Company (WDC) and the Government of Hong Kong agreed to develop a theme park and resort complex, Hong Kong Disneyland, at a projected cost of HKD 28bn (USD bn) with a scheduled opening forDownload