"Redbridge has provided us with a deep understanding of the banking market, along with valuable operational support that enabled us to anticipate lenders' requests and calibrate our demands effectively, ultimately leading to the achievement of our objectives."
Engagement overview
- Renegotiation of the Sustainable Linked Loan (SLL), leveraging the group’s performance during the 21/22 fiscal year, with the aim of enhancing the financial capabilities to support the development.
- Context: conclusion of the availability period for the External Growth Tranche, which expired in March 2023.
Objectives
- Strengthening Wavestone’s financial capabilities through an increase in tranche sizes and extension of maturities for the Sustainable Linked Loan (SLL).
- Minimizing any variation in the historically favorable financial conditions.
- Limiting upfront fees to the maximum extent possible.
- Internationalizing the pool, preferably with an American partner.
- Continuing efforts to streamline legal documentation.
Results
- Revised syndicated loan through an amendment without modifying the pool.
- RCF Tranche: One-third increase, swingline, 5 years +1+1.
- External Growth: +60% increase, 7 years.
- Unconfirmed External Growth: +15%, 7 years.
- The margin grid has been slightly adjusted, taking into account historical competitiveness and market conditions.
- Documentation has been made more flexible.
- Introduction of a bilateral RCF with a leading American bank.
Methodology
- Updating the group’s credit profile based on the 21/22 fiscal year.
- Joint consideration of the evolving amounts required to support the medium-term development plan.
- Pre-onboarding of legal counsel.
- Development and finalization of a detailed termsheet signed by the agent.
- Preparation of appropriate language for optimal negotiation with the agent.
- Wavestone’s support during crucial meetings and discussions with the coordinator.
- Guidance in approaching and discussing matters with the US bank.
Value added by Redbridge
- Deep understanding of practices and market conditions related to syndicated and bilateral bank credits, facilitating the questioning and reconciliation of banking positions as well as the adjustment of negotiation parameters.
- Neutral role in a process deliberately aimed at modifying and extending the existing contract, with coordination carried out by the Agent.
- Contribution to meeting deadlines in the execution of the transaction, aiming for completion before the end of 2022 (for the syndicated loan) and before the fiscal year-end (for the bilateral with the American bank).