HL RX SA 2025 (LDN)

Based on the most helpful WSO content, here are some insights on the level of RX technicals required for summer analyst interviews:

Key Topics to Cover:

1. Classic Technical Questions with an RX Bend:

   • PIK (Payment-in-Kind) through the three financial statements.
   • Asset write-downs through the three financial statements.
   • Differences in DCF (Discounted Cash Flow) for a distressed company.
   • Enterprise Value (EV) for a distressed company.

2. RX Specific Questions:

   • Qualitative:
     • Characteristics of a distressed company.
     • General dynamics of restructuring (not just Chapter 11).
     • Types of out-of-court restructurings.
     • Chapter 11 process.
     • Cram downs.
     • DIP (Debtor-in-Possession) loans.
     • Impaired vs. unimpaired classes.
     • Profiles and screens in RX.

• Quantitative:
  • Basic bond math (e.g., estimating YTM, changes in YTM with different maturities).
  • Waterfall questions (e.g., identifying the impaired class, calculating recovery).
  • Finding interest rates given leverage and coverage ratios.

Additional Considerations:

• In-Court Proceedings: Understanding the Chapter 11 process and related terms like cram downs and DIP loans is crucial.
• Cap Tables: While not explicitly mentioned, having a solid grasp of cap tables can be beneficial, especially in understanding the capital structure of distressed companies.
• Non-RX Questions: Be prepared for standard IB technicals like paper LBOs, as these can still come up in interviews.

Preparation Tips:

• Contextual Understanding: Show that you understand what RX is and what RX bankers do.
• Practice: Go through classic technical guides and focus on the RX-specific nuances.
• Mock Interviews: Practice with peers or mentors to get comfortable with both qualitative and quantitative RX questions.

Good luck with your interviews!

Sources: Restructuring technicals and their difficulty, Why You Should Consider Restructuring – Common Misconceptions/Insight on RX Groups, Why You Should Consider Restructuring – Common Misconceptions/Insight on RX Groups, Restructuring prospects, why you should not consider restructuring, Restructuring prospects, why you should not consider restructuring