Client Relationship at a cross-road
Relationship with the client had been established for 3 years. Bank was part of the top tier group. The problem was that the company had variable performance and management issues which created uncertainties within its banking group. The company had addressed these issues and installed a new management team.
The new management team sought to implement its own strategy, and brought a key transaction to its core banks in late November with a window of providing committed support by mid December in order to execute the trade before the year end. The client proposed not only to raise funds for the acquisition but to re-finance existing debt, alongside a capital raising.
To review the transaction, its accompanying due diligence, negotiate terms and pricing and present a detailed case for internal credit support to consider the bank’s role in the total financing.
Our consultant brought together the team to consider the proposal which involved local and offshore colleagues. The proposal was supported on the basis of 4 banks underwriting the clients debt facility. Syndication teams were engaged to review the prospects for post commitment sell down.
The deal was supported within the clients timescales, being the first bank to provide a positive commitment. The transaction ultimately went ahead with 5 banks in the underwriting group. The post event sell down was heavily over-subscribed. The bank achieved further revenue growth from additional ancillary debt opportunities that arose in overseas subsidiaries, cash management business in Canada and trade facilities to support capital equipment purchases for the acquired company.