Redbridge’s approach marks a shift away from the market assumption that terms and conditions of a transaction are fixed by lenders.
In a market that still favors borrowers, many companies are seeking to optimize their financing structure and leverage current opportunities made available by regulatory and prudential changes. Mid-size companies today have access to disintermediated financing, directly connecting lenders with buyers, which enables those companies to satisfy wider needs, whether amounts, maturity or financing flexibility.
The optimum level of disintermediation depends on several factors specific to each company:
- The company’s credit profile
- Changes in the company’s short-, medium- and long-term financing needs, depending on their strategic plan
- Market trends and opportunities
Market Trends & Opportunities
Any desire to diversify financing sources, however, must not disregard the constraints such as financial communication, cost, limits on financial flexibility, and other limitations.
In addition, the need to preserve a quality relationship with banking partners must not be neglected. In this regard, the negotiation of a new bank loan, syndicated loans or club deals, in particular, remains key since it allows the pool of lenders to be redefined and the borrower to reassess existing bank relationships.
How Redbridge can help you:
In bank financing or disintermediation, Redbridge has developed a unique process allowing its clients’ finance team to stay in control throughout negotiations.
Each client engagement is built on a case-by-case basis, taking into account the client’s constraints and specific objectives, their mode of operation and strategic ambitions.
Our approach makes it possible to act outside traditional market constraints where the conditions of a transaction would be fixed by the banks or by investors. Redbridge’s objective is to secure the best possible market deal by optimizing the impact of competitive dynamics on three key points of each transaction:
In the last five years, Redbridge has helped more than 60 companies execute a broad array of transactions from basic to complex, including all types of financing:
- Syndicated bank loans, club deals or bilateral loans
- Bond financing
- Private placements on all markets (Euros or US dollars)
- Negotiable debt securities
- Factoring and reverse factoring
- Commodity Trade Finance
- Finance leasing
- Bank guarantees
- Structured financing
The variety of engagements, including acquisition financing, commodity trade finance, CAPEX, refinancing, amend and extend, and diversification underscores the deep and complementing expertise of the Redbridge team and a capacity to meet all of our clients’ financing needs.
Having this expertise is especially critical in structured financing as it must be entered consistently in the company’s financial liabilities, avoiding any additional complexity to its current financial operations. Redbridge has developed a franchise both in Europe and North America to renew existing programs and implement new financing structures.