FLF5722 Mechanics of Credit Risk Analysis Assignment.

Assignment Question - Participants are provided with the financial statements of Ted Baker Plc.

The following facility is requested by the company: £90,000,000 long term debt to restructure the balance sheet. The company currently has a revolving credit facility amounting to £180,000,000. The company`s current borrowing`s structure is mismatched with too much short-term debt.

You are required to: To make a recommendation if a Bank should proceed or not with this loan, highlight the strategic issues involved in making this decision, communicate all the risks you can identify, explain what extra information needs to be provided (if any) and state your suggested plan of action (whether your advice is to proceed or not to proceed with the deal).

The areas which need to be covered in the assignment, should include:

1. Executive Summary END.

2. Description of the requested facility.

3. Background Information and business analysis.

4. Economic/Industry/Sector/Market Information and Analysis.

5. Financial Statements - summary IDENTIFY ANY POTENTIAL FINANCIAL RISKS.

6. Risk Assessment.

7. Projections - THIS IS IMPORTANT SECTION - CAN THE CLIENT SERVICE THE DEBT.

8. Recommendation.

1. Executive Summary.