"In a very tight timeframe, Redbridge provided a sounding board, value-added advice and proactive management of the agencies, allowing us to optimize our acquisition financing while identifying & managing rating considerations."
Objectives
- Optimize the financing of the Caraustar acquisition
- Assist Greif in the last round of negotiation on the financing structure / documentation with the underwriters
- Manage the rating process: M&A impact on LT rating / bond notching
Results – Rating Advisory
- Process coordination from early calls to rating agency meetings and rating publication
- Preliminary evaluation of the rating following agency methodologies
- Identification of major challenges and impacts on Greif’s rating, allowing Greif to proactively manage agencies and the bond sale process
- Drafting of the Rating Agency Presentation, which then served as a basis for the Lenders Presentation and Bond Roadshow slideshow
Results – Syndication
- Quick wins rapidly identified and obtained in the term sheet / commitment letter before signing the agreed forms
- Increased flexibility for Greif
- Negotiated sizeable fee reductions
- Renegotiated fee schedule (and step-ups) to prevent significant fee inflation
- Multiple areas of adjustment identified during the long-form negotiations, leading to material improvements in the final Facility Agreement
Methodology
- Conducted thorough credit analysis in line with Agencies’ methodologies (including bond rating analysis)
- Made an exhaustive review of mandate documents and identified negotiation points prior to execution
- Crafted structure of credit story, including Rating Agency Presentation
- Conducted thorough analysis of the underwriters and potential lenders’ profitability on the transaction
- Closely followed the syndication process and provided points to help Greif hold the lead bank accountable
Redbridge’s Added Value
- In-depth knowledge and understanding of market practice and acquisition loan market
- Supported Greif in identifying negotiation points in the credit documentation and structure of fees
- Provided additional recommendations around strategies for allocation of ancillary business
- Full management of the rating process – credit story, preparing management for the meetings, led the process and follow ups and identified the key points for outcome