"Redbridge really helped Axway improve the pricing and increase the flexibility of its bank debt, which will facilitate the group’s transition to its new business model. "

Patrick Donovan
CEO of Axway

Project Description

  • Amend and extend Axway’s 125 million euro ($137.9 million) syndicated revolving credit facility

Objectives

  • Extend the maturity of the revolving credit facility
  • Optimize margin and fees, despite unfavorable circumstances related to the temporary sales transformation affecting Axway’s financial performance in the short term
  • Increase documentation flexibility, particularly covenants and growth baskets

Results

  • Extended the maturity date from 2019 to 2023 and implemented two annual extension options
  • Reduced the whole margin grid
  • Improved financial covenants and general flexibility, allowing Axway to pursue its external growth strategy and efficiently manage through its transformation

Methodology

The Redbridge Debt Advisory team assisted Axway’s management team in the negotiation of the amend and extend by:

  • Defining Axway’s credit profile and the banks’ approach
  • Leading an exhaustive and rigorous process
  • Writing a detailed target term sheet and negotiating bilaterally with each bank
  • Working on the convergence of each bank towards the final term sheet for the credit committee’s approval process

Redbridge’s Added Value

  • Pursued an amend and extend process rather than refinancing, despite significant revision of documentation and short timeframe before the maturity date, making the process less expensive for the company
  • Strong knowledge of the market
  • Managed the entire amend and extend process, including the subtleties of the negotiation and the technical details of the transaction
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