"The role of Redbridge has been instrumental in supporting us with both an efficient and effective process for this milestone group financing transaction. "
Engagement overview
Accompany Traxys through the entire process of refinancing its USD 1.62 Billion flagship revolving credit facility mostly secured and in the form of a borrowing base facility
Objectives
- Support Traxys to increase visibility over market conditions regarding target pricing and structure of the facility;
- Ensure deployment of optimal debt sizing and structure catering for future growth;
- Preserve structure integrity while allowing for needed fine-tuning;
- Optimize liquidity from both existing and new lenders.
Results
- Smooth and timed process in raising a 40% oversubscribed financing package surpassing management’s expectations;
- 7 new banks joining and 50% of existing lenders increasing commitments;
- Overall important facility pricing reduction;
- Preserving maximum liquidity: advance rates, asset classes, and increased clean tranche;
- Enhanced facility flexibility and accordion option.
Methodology
- Advisory on optimal structure and its implementation strategy;
- Advisory on the bank consultation process and supporting material;
- Close follow-up of syndication process, liquidity analysis, tranche and pricing strategy;
- Related negotiations aimed at converging to targeted structure and conditions;
- Review and analysis of all transaction documentation;
- Preparation of various presentation material internal and external for the various stakeholders and lenders.
Value added by Redbridge
- Dedicated expert capacity across complex syndicated finance and commodity trade finance techniques;
- Thorough understanding of banks’ practices and drivers of their behaviour;
- Structured analytical process allowing to analyze, synthetize and issue recommendations based on large number of bilateral bank discussions;
- Two step negotiation approach that allowed reaching optimal terms and conditions from a very diversified panel of potential international lenders;
- Close coordination with legal counsel to ensure optimal structure outcome of deal documentation.