"Redbridge provided invaluable and efficient assistance throughout the process of raising this new funding. They were able to accomplish everything within the agreed timeframe at highly attractive prices and terms."
ENGAGEMENT OVERVIEW
- Arrangement of additional financing needed to fund Monnoyeur’s acquisitions
- Targeted funding of €200 million
OBJECTIVES
- Optimize financing costs by keeping the pricing of new funding in line with the group’s existing syndicated loan, which was negotiated during an amend & extend agreement in 2021, despite today’s more adverse market conditions
- Ensure legal documentation remained closely in line with existing documentation, but with slight easing of external growth clauses
- Integrate ESG KPIs
- Adhere to the M&A timeline
RESULTS
- Signature of a €200 million five-year amortizing term loan (30% bullet)
- External growth clause slightly relaxed
- Very limited price increase
- Integration of two ESG KPIs : Green house gas and gender parity in executive recruitment
METHODOLOGY
- Immediate onboarding of the law firm in the process
- Preparation of the presentation to the banks and the initial term sheet
- Launch of the consultation with the banks (bilateral)
- Obtaining a solid level of oversubscription, enabling favourable negotiations with the banks until the production of the final term sheet
- Passage through the credit committee and decision on the pool / ticket and roles
- Producing legal documentation concurrently while closing the deal within the expected timeframe
REDBRIDGE’S ADDED VALUE
- Joint coordination with all parties (banks and lawyers) involved
- Keeping up the pace of the process to avoid falling behind the M&A schedule while resisting lenders’ demands for increased margins
- Analysis of the banks’ feedback
- Providing support in the negotiation of the terms and conditions
- Working to get the seven banking groups (consisting of 11 banks) to agree on a common term sheet
- Review of the documentation and providing assistance until closing