"Not only did Redbridge provide substantial logistical support, they also skillfully and capably served as the syndication leader in place of a bank syndicating agent, who can never be impartial. "
Mission
- Refinance a EUR 630 million facility
- Amend a EUR 620 million facility
- Amend and extend a EUR 250 million facility
Objectives
- Extend the average maturity of the Group’s three syndicates while obtaining optimized financial conditions
- Implement unique and somewhat more relaxed documentation relative to current documentation
- Slightly reorganize the bank pool
Results
- Average credit maturity was extended by over 60%
- Financial conditions were optimized, generating substantial savings for the Group
- Created a group of 14 lenders and implemented documentation that was unique to the three facilities
Methodology
- Upstream reflection with Sonepar on strategic choices/challenges/objectives
- Three operations carried out at once to ensure credit coherence and harmonization
- RFP sent out to current banks and a small group of new banks
- Bilateral discussions/negotiations with all potential lenders
- Transparency about banks in terms of trends that emerged from each “round”
- Comparison of lenders after obtaining credit agreements
Redbridge’s Added Value
- Upstream reflection: strategic choice to refinance part of the facilities and negotiate an amend/amend & extend for the rest
- Process: maintain healthy competition between lenders until the last minute
- Timing: keep a well-paced calendar
- Terms & conditions: several rounds of negotiations to achieve the desired progress from lenders (even the most reluctant of the banks closest to the Group)
- Negotiation of flexible, harmonized documentation