"The expert capacity role of Redbridge has been instrumental in supporting our global treasury team to implement additional bilateral facilities in an effective manner. "
Assignment overview
- Accompany Traxys with the implementation of several bilateral transactional commodity finance lines
Objectives
- Further diversify sources of group liquidity
- Maintain a “lean and mean” structure fully aligned with the core syndicated facility of the group
- Accelerate implementation process as driven by business needs
Results
- Several facilities with European and North American banks have been implemented representing up to USD 255 million of additional liquidity for the group
- Facility structures were aligned to the group policy and designed to meet the specific flow needs of Traxys with focus on operational flexibility
- Maximized liquidity: advance rates, asset classes, clean tranche
- Overall reduced cost of capital
Methodology
- Design target terms sheet / structure of target optimal facility based on Traxys trade flows and global bank policy
- Agreed best practice approach in dealing with banks under guidance of Traxys treasury and counsel teams
- Detailed review and analysis of each bank’s proposal
- Related iterative negotiations aimed at converging to targeted structure and conditions until finalisation
- Review and analysis of all transaction documentation
- Bi-weekly steering committee with Traxys treasury team discussing progress
- 24 to 48h turn around time to every Traxys and bank query or iteration
- Close follow-up of process with both Traxys and each bank
Redbridge’s added value
- Dedicated expert capacity across complex commodity trade finance techniques
- Thorough understanding of banks’ practices and drivers of their behavior
- Structured analytical process allowing to analyze, synthetize and issue recommendations on large number of bilateral bank discussions
- Multi step negotiation approach that allowed reaching optimal terms and conditions from a diversified panel of specialized international lenders