"Redbridge / Accola has played an essential role in this long-lasting project. Redbridge / Accola helped us close a high-quality transaction that was optimized in all financial respects. They provided a highly professional service and are a partner we intend to count on in the future."
Engagement overview
- Support Fraikin in renewing their securitization program, ensuring sustainable financing for their vehicle fleet, which would allow for growth in France, the UK, and Spain
Objectives
- Increase funding capacities
- Reduce funding costs
- Simplify structure
- Improve risk measurement processes
Results
- Current securitization program enhanced through issuance of a junior (« BB » equivalent) note
- Cost of investment grade funding reduced by 20% compared to current securitization
- Structure streamlined and simplified, and made easier to read for investors
- Improvement of data collection process
Methodology
- Pool selection (review of new asset classes/ geographies) with originators
- Drafting of Request for Proposals, assistance in the selection of arrangers and the negotiation of funding terms with bank lenders
- Support in the negotiation of arranger mandate
- Technical assistance with understanding pool credit risk (definition of default, cohort analysis, calculation of default rate, portfolio loss profile, definition of portfolio triggers, S&P rating methodology)
- Negotiation of business terms (term sheet, documentation)
Value added by Redbridge
- Dedicated team of securitization and regulatory experts
- Methodology and negotiation capabilities helped maintain the project’s focus and pace against a volatile backdrop (covid, Ukraine)
- Exhaustive knowledge of players’ ability to propose accurate longlists and shortlists of potential new arrangers
- Optimization of the structuring: analysis of factors including asset base, rating and tax
- Improvement of documentation: simpler and more flexible and scalable