"Redbridge has enabled Nexity to accelerate its entry into the NEU CP market by promoting a strong commitment between all parties, including the dealers, investors and the market in general, at each step of the process. "
Assignment overview
- Implementation of a €300 million NEU CP (Negotiable European Commercial Paper) program
Objectives
- Diversify sources of financing and the Nexity Group’s lender base
- Seize market opportunities in terms of optimization of financing costs
- Benefit from a flexible, easy-to-use financing instrument
Results
- €300 million program
- The €500m revolving credit facility tranche from the Group’s syndicate acts as a back-up line
- Dealers: BRED, CACIB, CIC, SG
- Custodian: CACEIS Corp. Trust
- Program issuance increased significantly in several days
Methodology
- Parallel management of three processes:
- Banque de France process for the approval of the NEU CP program within the initially defined schedule
- Consultations with banks and brokers that would be selected to take part in the program
- Program marketing and launch
- BdF meeting 8/29 – signing financial documents 9/10 – signing dealer contract end of September – test issuance followed by BoF publication 9/27 – inaugural issues 10/2 and 10/11
- Organization of “testimonial” meetings with the treasury departments of two NEU CP issuers active in the market
Redbridge’s added value
- Support in due diligence required for project approval
- Organization and coordination of the entire project
- Preparation of the financial documentation and management of discussions with Banque de France (BdF)
- Support during the consultation for the dealership role
- Co-facilitation of meetings (agents, Banque de France)
- Drafting of the sales credit memo for the dealers
- Preparation of agent contracts in collaboration with the legal advisor
- Recommendations on inaugural pricing and that of additional issuances