"We found Redbridge’s experience and familiarity with revolving credit facilities and sustainability linked products to be very valuable in completing this transaction"
Engagement overview
- Provided guidance on conversion of the company’s existing revolver into a sustainability-linked revolver
- Reviewed amendment terms in the context of a substitution of borrowers and extension of maturity
Objectives
- Integrate ESG criteria to achieve a potential pricing benefit
- Structure key performance indicators (“KPI’s”) in line with company’s strategic ESG plan
- Close amendment within 4-6 weeks
Results
- Revolver amendment successfully closed in ~6 weeks with $300M borrowing base and maturity extension to 4 years
- Incorporated two environmental KPI’s and one social KPI
- Further demonstrated the company’s commitment to ESG principles to banks and investors
Methodology
- Review the company’s current sustainability goals and reporting
- Negotiate KPI’s with Lead Sustainability Structuring Agent
- Develop presentation for banks
- Coordinate drafting of sustainability aspects with company’s legal counsel and Lead Sustainability Structuring agent
Value added by Redbridge
- Improved Terms & Conditions: advised during negotiation of sustainability pricing structure and required KPI levels, and reviewed amendment terms
- Coordinated between all parties: banks, legal and internal sustainability and finance teams
- Ensured that a tight timetable was met
- Clear communication to the banks, leading to faster closing and fewer questions
- Served as independent sounding board to the company