"Thanks to its credit expertise and comprehensive market vision, Redbridge made it possible for us to refine our strategy towards we approach lenders."
Engagement Overview
- Implementation of the financing of the project to modernize the Roland Garros stadium
- Project cost: €360m
- Financing amount: €200m
Objectives
- Obtain long-term financing
- Be competitive in terms of price
- Be flexible in terms of commitments
- With a limited pool including the original bank
- Take governance and political issues into account
Results
- Positioning risk as a corporate risk rather than a project risk
- Unsecured financing at a 16-year fixed rate to ensure sustainability
- Very competitive and extremely flexible financial and legal conditions
- Maintaining the privileged relationship with the original bank
Methodology
- Analysis of the business plan and determination of the financing requirement
- Detailed cash flow analysis for optimal credit positioning
- Bilateral consultation of both long-standing and new bankers
- Two-round consultation process
- Maintaining bilateral negotiations until final determination of conditions
- Initial drafting of financial documentation to maintain negotiating momentum
Value Added by Redbridge
- Project management by a dedicated team working alongside the Finance department during the 18-month period of the project
- Obtaining a far more versatile documentation system compared to a project financing structure
- Maintaining bargaining power through the client’s throughout the process
- Additional liquidity protection during the construction phase of the project
- Optimization of each element (price, structure, amount and all documentation criteria) to ensure credit sustainability and competitiveness over 16 years
- Expansion of the banking pool to include competitive banks with good liquidity
- Achieved savings of over €15m