"After informing us early on about the opportunities provided by the NEU CP market, Redbridge skillfully supported us until our program was in place."
Engagement Overview
- Implementation of the first Negotiable European Commercial Paper (NEU CP) of an unlisted mid-cap company with a short-term rating
Objectives
- Assist with the adoption of the NEU CP and the selection of an appropriate rating system
- Solidify the project’s parameters and ensure its success
- Choose the dealer pool and domiciliary agent for the program in an unbiased manner, while preserving the company’s relationships with its banking partners
- Ensure that the project has a solid foundation and leads to outstanding results
Results
- Program of up to €200m ($220.6m)
- Designed a program with a short-term rating
- Program received an SR1 rating from the French credit rating agency Spread Research
- Selected three placement agents – CACIB, CIC and SG – from the bank pool, bringing together the underwriting needed to launch the project
- Inaugurate mid-March issuance of €60m ($66.2m) at very competitive prices
Methodology
- Managed the process composed of three main players: agents, rating agencies, and Banque de France
- Personalized the approach with the selected banks to account for any previous relationships, bank motivations, and their ability to support at launch
- Developed the sales credit memo, which better ensures market adherence to the program and fair positioning of coupon/maturity balance
Value Added by Redbridge
- Developed an innovative approach (NEU CP rated by an alternative agency) and promoted it both internally and externally
- Interacted with all parties (i.e., Banque de France, banks, agents, lawyers)
- Provided expertise in the optimal issuance levels (coupon/maturity), which will ensure a successful launch, while maintaining competitive conditions for the issuer
- Worked with and supported project teams, including during the post-growth phase