"Redbridge’s support was instrumental in helping us successfully carry out this complex transaction in what were difficult market conditions. The tailor-made process enabled us to secure the liquidity within the expected timeframe. "
Engagement overview
- Debt Structure Advisory: bank rating analysis, determination of liquidity and financing needs, revolving credit facility (RCF) sizing, definition of target terms and conditions
- Refinancing of the syndicated RCF before it matures in 2025
Objectives
- Secure the Group’s liquidity needs
- Facilitate discussions with banks, particularly with the lenders offering the less attractive terms
- Negotiate the most flexible legal framework possible
- Ensure that the facility received a “Sustainability-Linked” label
Results
- Signing of a €140m RCF with an option to increase the facility’s size through an accordion clause
- Maturity of four years, with the option to extend by one year
- Facility agreement was in line with the Group’s strategy despite a tense market environment and requests for credit tightening from lenders
- Facility achieved a sustainability-linked loan label, in line with Etam’s CSR policy
Methodology
- Helping the Group determine the optimal debt financing structure taking into account its business plan
- Credit profile positioning
- Liquidity and RCF sizing
- Preparation of the information package (bank presentation, term sheet and positioning questionnaire)
- Coordination and management of the consultation with banks
- Negotiation of the terms and conditions
- Coordination of the ESG workstream
- Providing support as and when it was required
Value added by Redbridge
- Tailor-made process followed in collaboration with Etam’s management team to ensure the transaction was a success
- Ongoing dialogue with banks to make sure they understood the Group, the sector it operates in and their the business plan
- The Redbridge team was available whenever it was needed, produced internal materials and provided support for key decision-making
- Project completed in 4.5 months, with all interim deadlines met throughout the process