"As part of a first double rating for Sonepar that accompanied the implementation of a commercial paper program, Redbridge’s expertise and involvement were invaluable to us."
Assignment overview
- Implementation of a €500 million Negotiable European Commercial Paper (NEU CP) program and program rating
Objectives
- Optimize the group’s financing costs and continue the policy of diversification of financing
- Assist the customer throughout the rating process, from the selection of agencies to obtaining the short-term rating
- Program strength to be rapidly increased at optimum pricing conditions
Results
- Program sized at €500 million
- Program rated A-2 by S&P and SR1 by Spread Research
- Selection of six placement agents (Aurel BCG, BNPP, BRED, CACIB, CM-CIC, SG) including the banks from the bank pool, bringing together the underwriting needed to launch the program
- Inaugural issuances on June 13, 2019 of €155 million at one, three and six months in very competitive conditions
Methodology
- Management of a triple process: placement agents | rating | Banque de France
- Preparation of the rating book used to best present the group and the key credit elements
- Personalized approach to banks to account for previous relationships, their motivations and their ability to assist at launch
Redbridge’s added value
- Coordination of all players (Banque de France, banks, agents, lawyers)
- Management of relations with rating agencies, assistance in preparation of the credit story (drafting of the rating book), coaching of financial management and executive management teams
- Providing information on good issuance levels (coupon / maturity) to ensure a successful launch while maintaining competitive conditions for the issuer