"Redbridge’s support has enabled us to make a start on a new, confirmed five-year contract, strengthen our deconsolidation and significantly reduce costs through a well-managed schedule and process. "
Mission
- Renewal of the factoring program that was launched in 2010 and amended on several occasions
- Program size: €100–150m
Objectives
- Reduce pricing conditions, in particular for factoring fees
- Maintain the deconsolidating aspect of the program
- Obtaining a program confirmation for a minimum of three years
Results
- Significant improvement (~25%) in pricing conditions
- Five-year evergreen maturity (one-year extension every year)
- IFRS deconsolidation, strengthened by more precise and detailed language
- More flexible program documentation
Methodology
- Upstream phase: analysis of the customer’s current contract
- Launch of consultation with five factors based on the upstream analysis and a target term sheet
- Bilateral negotiation of target conditions with each factor in order to establish a definitive term sheet, on
the basis of which the shortlisted factors were passed on to the credit committee - Selection of the factor
- Drafting of the final documentation in conjunction with the auditor in order to pre-validate the deconsolidating aspect of the program
Redbridge’s Added Value
- Thorough analysis of the customer’s position to determine the precise needs of the Group and presentation of an adapted target term sheet
- In-depth understanding of conditions in the factoring market, enabling straightforward identification of areas for improvement in the existing contract and enabling a critical look at the structuring initially proposed
- Methodology based on bilateral negotiations, enabling alignment of the most suitable factors in terms of financial and documentation conditions
- Management of the schedule, ensuring that momentum was maintained despite the COVID-19 lockdown measures