"In a very tight timeframe, Redbridge provided a sounding board, value-added advice and proactive management of the agencies, allowing us to optimize our acquisition financing while identifying & managing rating considerations."

David Lloyd
Corporate Financial Controller and Treasurer

Objectives 

  • Optimize the financing of the Caraustar acquisition
  • Assist Greif in the last round of negotiation on the financing structure / documentation with the underwriters
  • Manage the rating process: M&A impact on LT rating / bond notching

Results – Rating Advisory 

  • Process coordination from early calls to rating agency meetings and rating publication
  • Preliminary evaluation of the rating following agency methodologies
  • Identification of major challenges and impacts on Greif’s rating, allowing Greif to proactively manage agencies and the bond sale process
  • Drafting of the Rating Agency Presentation, which then served as a basis for the Lenders Presentation and Bond Roadshow slideshow

Results – Syndication

  • Quick wins rapidly identified and obtained in the term sheet / commitment letter before signing the agreed forms
    • Increased flexibility for Greif
    • Negotiated sizeable fee reductions
    • Renegotiated fee schedule (and step-ups) to prevent significant fee inflation
  • Multiple areas of adjustment identified during the long-form negotiations, leading to material improvements in the final Facility Agreement

Methodology 

  • Conducted thorough credit analysis in line with Agencies’ methodologies (including bond rating analysis)
  • Made an exhaustive review of mandate documents and identified negotiation points prior to execution
  • Crafted structure of credit story, including Rating Agency Presentation
  • Conducted thorough analysis of the underwriters and potential lenders’ profitability on the transaction
  • Closely followed the syndication process and provided points to help Greif hold the lead bank accountable

Redbridge’s Added Value 

  • In-depth knowledge and understanding of market practice and acquisition loan market
  • Supported Greif in identifying negotiation points in the credit documentation and structure of fees
  • Provided additional recommendations around strategies for allocation of ancillary business
  • Full management of the rating process – credit story, preparing management for the meetings, led the process and follow ups and identified the key points for outcome

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