"I highly recommend Redbridge for their excellent support in securing increased and extended financing, and particularly for their expertise in implementing ESG indicators, which has been instrumental in enhancing our commitment to sustainability."
Engagement overview
- Increase and extend Christian Louboutin’s syndicated revolving credit facility leveraging the existing legal mechanism;
- Implement ESG KPIs and convert the facility into a Sustainability Linked Loan.
Objectives
- Increase RCF amount;
- Extend maturity by one year;
- Define and integrate 3 sustainable performance targets;
- Optimize deal conditions (e.g. objective of no repricing).
Results
- Facility increased and extended by one year according to expectations;
- No repricing on the margin;
- After a careful and detailed analysis and thought process integration of 3 KPIs, material and meaningful to Christian Louboutin and welcomed by the banks.
Methodology
- Consultation launched with the pool of existing banks;
- Bilateral discussions/negotiations with each potential lender on the basis of a target term sheet;
- Alignment towards consensual terms and conditions;
- RFP ESG Coordination;
- Compliance with the Christian Louboutin’s internal corporate social responsibility objectives in order to define the most relevant criteria to be included in the facility;
- Coordination of the drafting of sustainability aspects with company’s legal counsel and sustainability coordinators.
Value added by Redbridge
- Process: maintaining a fair competition among lenders during the whole process;
- Strong knowledge of the market with regards to RCF market conditions and KPI implementation;
- Optimal structure and conditions in relation to the Group’s credit profile and market acceptance capacity;
- Coordination between all parties: banks, legal and internal sustainability and finance teams;
- Clear communication to the banks, leading to faster closing and fewer questions.