Disney and HK government signed an agreement in 1999 for a theme park in Hong Kong. Chase Bank had the mandate for the HK$3.3 billion funding required.
Chase considered a general loan syndication or two-stage syndication with prior sub-underwriting; and developed three methods to complete the syndication. It now must decide how best fund its client.
Key points facts and problems:
Executive Summary (excluded from word count)
1. What are the problems and the key issues that arise
2. Address the given discussion points or questions
3. Conclusions and recommendations if any
Appendix (excluded from word count)
Do Not use a Q and A answer format : make this a business type briefing
and avoid simply restating what is already in the case
Q1:What are the key issues that Chase should consider when designing a syndication strategy for its client?
Q2: Is this a lending opportunity that Chase should seek to win?
Q3: What are the financial and non-financial advantages of each of the three key syndication approaches developed by the Chase team?
Q4: Which banks and what roles should Chase consider inviting to participate in the syndicate? Chase
Q4: What features and conditions should Chase insist that Disney include in the facility?