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 euro bond that could be hedged back into U.S. dollars. This structure is Euro Dollar Bonds, euroyen bonds and bonds traded Euroyen comparison or hedged back into U.S. dollars.

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 euro bond that could be hedged back into U.S. dollars. This structure is Euro Dollar Bonds, euroyen bonds and bonds traded Euroyen comparison or hedged back into U.S. dollars.
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from
W. Carl Kester,
William B. Allen
Source: Harvard Business School
14 pages.
Release Date: 6 January 1987. Prod #: 287057-PDF-ENG
R.J. Reynolds International Financing HBR case solution

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