"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."

Zekeriya Turhal
Group Treasurer

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
Data for Stronger Banking Relationships

Select your location