"The role of Redbridge has been important as sparring partner and instrumental in supporting us to obtain optimal terms and conditions for such a key financing transaction for the Group."
Engagement overview
- Guide Ocean Partners (OP) through the renewal process of its metal concentrate borrowing base facility
Objectives
- Enhance OP’s awareness of market best practices for this type of instrument
- Improve transparency regarding banks’ risk perception of the facility
- Successfully renew the facility and potentially optimize liquidity up to an agreed threshold
- Maintain or increase participation from existing lenders and attract new banks to the facility
- Secure additional specific structural improvements, including pricing
Results
- Ensure the facility is renewed promptly, aligning with targeted liquidity goals
- Obtain lenders’ consent for proposed structural changes
- Welcome a new bank into the deal
- Optimize pricing, including margin and fees
Methodology
- Implement a timely and systematic approach in line with the agreed renewal calendar
- Provide advisory support for the bank consultation process, including the preparation of necessary supporting materials
- Conduct benchmarking against recent comparable deals
- Offer advisory services on the optimal structure and potential implementation strategy
- Maintain close oversight of the bank negotiation process and conduct liquidity analysis
- Engage in related negotiations to align with the targeted structure and conditions
- Conduct a comprehensive review and analysis of all transaction documentation
Value added by Redbridge
- Leverage dedicated expert capacity in commodity trade finance techniques and club deal arrangements
- Provide a detailed perspective on potential improvements based on comparable deals
- Possess a thorough understanding of banks’ practices, credit risk perceptions, and key drivers
- Utilize a structured analytical process to analyze, synthesize, and issue recommendations derived from numerous bilateral bank discussions
- Employ a two-step negotiation approach, facilitating the attainment of optimal terms and conditions from a diverse panel of international lenders