Engagement overview
Arrange a flexible facility complementing existing asset financing with the aim of financing Waga’s development, supporting its strong growth and helping it scale up its operations
Objectives
- Build a diversified banking pool that is able to support the group’s continued growth
- Integrate the facility in the existing financing structure
- Limit covenants and undertakings
- Meet an ambitious calendar
Results
- EUR 100 million green syndicated facility (EUR 80 million revolving credit facility (RCF) and EUR 20 million term loan) with three-year maturity, with the option to extend the RCF to five years
- Limited covenants, adjusted to match Waga Energy’s business plan
- Oversubscribed by a pool of 10 regional and national banks
Methodology
- Preparation and sounding out the market in advance, enabling to define the best approach and the targeted amounts
- Preparing a detailed information memorandum and a convincing credit story and performing risk analysis
- Preparation of a precise term sheet, to be used as the basis for negotiations with lenders, reducing the time spent drafting documentation
- Development of a dedicated financial model, facilitating in-depth understanding of the cash flows within the group
- Bilateral consultations with lenders
Value added by Redbridge
- ntimate knowledge of the most important points in the eyes of the various lenders that were approached, so that any possible issues were addressed in advance and that we could provide them with convincing arguments
- Our benchmarking of documentation and structuring practices enabled us to dismiss a number of lenders’ demands
- Modelling intragroup cash flows and subordination of the facility to accurately determine the optimal size the facility and the covenant levels
- Ongoing communication with all stakeholders during the process to minimize execution risk in the credit committee and ensure timely closing