"Thanks to Redbridge's resources and their team's expertise, we were able to mobilize the current banking pool to obtain the size and terms we were aiming for in our term loan. At the same time, Redbridge managed the process smoothly and ensured the timetable was respected."
Engagement overview:
- Target financing package of €400m, in bank term loan format
Objectives
- Against a backdrop of considerable M&A activity for Sopra Steria in 2023, the aim was to strengthen the group’s financial resources following its utilization of part of its revolving credit facility (RCF) and NEU CP programs
- Maintain a high level of liquidity
- Mobilize the existing banking pool while optimizing terms and conditions
Results
- Signature of a €400m five-year amortizing term loan, 30% at maturity
- A fast-track process: only took 12 weeks (and just 10 weeks from the launch of the consultation)
- Alignment with the documentation in effect on the RCF
- Competitive terms obtained, in line with the best bidding banks
Methodology
- Immediate onboarding of a law firm in the process
- Preparation of the presentation to the banks and of the target term sheet
- Launch of bank consultation (bilateral approach)
- Negotiations through two iterations leading to a term sheet everyone agreed on
- Review by committee followed by pool approval and allocation of tickets and roles
- Simultaneous preparation of documentation and closing within the envisaged timeframe
Value added by Redbridge
- Jointly co-ordinating, with Sopra Steria’s Finance Department, all parties (banks and lawyers)
- Ensuring the initial closing timetable was adhered to
- Analysis of feedback from the banks and providing accurate, concise reports
- Controlling execution risk and management of oversubscription to optimize terms and conditions
- Review of documentation and providing assistance through to closing