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 and opportunities
Any desire to diversify financing sources, however, must not disregard the constraints such as financial communication, ratings, cost, tradeoffs in 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
Redbridge has developed a unique process that allows finance teams to stay in control throughout creditor negotiations.
Each client engagement is built on a case-by-case basis, taking into account the client’s constraints and objectives, mode of operation, and strategic goals.
Our approach makes it possible to act outside traditional market constraints where the conditions of a transaction would be fixed by banks or investors. Our 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, we’ve 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 in all markets (USD or euros)
- 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.