Case | HBS Case Collection | January 1987 (Revised November 1991)

R.J. Reynolds International Financing

by W. Carl Kester and William B. Allen

Abstract

Reynolds must source a substantial portion of the financing of its Nabisco acquisition in offshore bond markets. Morgan Guaranty has proposed a yen/dollar dual currency Eurobond that could be hedged into dollars. This structure is compared to Eurodollar Bonds, Euroyen Bonds, and Euroyen Bonds swapped or hedged into dollars.

Keywords: Acquisition; Capital Markets; Currency Exchange Rate; Credit Derivatives and Swaps; Bonds; Financing and Loans;

Citation:

Kester, W. Carl, and William B. Allen. "R.J. Reynolds International Financing." Harvard Business School Case 287-057, January 1987. (Revised November 1991.)