"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. "

Jean-Philippe Grégoire
Group CFO

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 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
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