"Redbridge's guidance and leadership in the commercial paper market enabled us to successfully execute our inaugural NEU CP program. This is a new source of financing for the group and has allowed us to make significant financial savings and diversify our lender base."
Engagement overview
- Setting up Aegide’s inaugural Negotiable European Commercial Paper program (NEU CP)
- Advising Aegide about the rating process for its program, enabling the company to access the NEU CP market
Objectives
- Optimize funding costs with a competitive source of financing, using the group’s revolving credit facility as a back-up for the program
- Pursue the group’s policy of diversifying its short-term (one month to one year) financing
- Advise the issuer throughout the rating process, from selecting the rating agency to obtaining the rating
- Support the issuer in the process of setting up and then ramping up the program
Results
- Program size of € 100 million
- Program rated SR1 by EthiFinance
- Selection of five dealers: Aurel BCG, BNP Paribas, BRED, CACIB and Société Générale
- Selection of CACEIS as paying agent
- Inaugural issues of €55 million at the end of September / beginning of October at one month at competitive conditions
Methodology
- Management of three processes: dealers, rating and Banque de France
- Rating book drafted to introduce the group’s key credit elements
- Developing a personalized approach based on partnership with the group’s relationship banks
- Maintaining steady momentum even though the large number of stakeholders involved and the rating procedure acted to slow down the process
Value added by Redbridge
- Coordination of all parties involved (Banque de France, banks, rating agency, lawyers)
- Management of the relationship with the rating agency, assistance in developing the credit story (drafting of the rating book) and coaching Aegide’s finance department
- Providing insight on pricing (coupons and maturities) to ensure a successful launch
- Coaching the issuer after the inaugural issues