Case Study question
I've been sent a case study for a particular company and have been asked to assess whether or not I would invest in the senior notes.
1) My approach is to essentially write a credit memo, covering strengths, weaknesses+mitigants, high- level cashflow model etc Is there anything else I should include in the paper?
2) how would I assess whether or not I should invest in the notes. Let's say the notes are trading at 85, would I calculate theand if this is greater than the notes coupon, then yes? Or should I be looking at EV and assessing whether or not there is sufficient debt coverage?
3) Also been provided with an OM - is there anything I should look out for in particular in this document?
Thanks in advance