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Stakeholder management for syndicated LBO
Case studies

Stakeholder management for syndicated LBO

Background
  • LBO supported by EUR 200m financing syndicated to 10 lenders
  • The Company was bound to award the right to hedge to all lenders
  • A floor on EURIBOR at 0.0% made pricing comparisons difficult and affected a fair decision process
  • The Company had limited capacity to handle the documentation requirement of a large number of banks
Our Approach
  • JCRA arranged three pre-selection pricing rounds, requesting pricing and granular details at the same time, thus being able to identify the best price, and the 9 of 10 matching banks
  • JCRA provided a data room for the hedging required documentation and timed the signing/reviewing of documentation in coherence with project timeline
  • JCRA coordinated a 10-party auction process ensuring alignment on execution to the transaction charges agreed upon
Benefits
  • Transparent bank selection and a data driven push on banks for price improvement, while being respectful of the relationship with the bank and keeping with formal agreed processes
  • JCRA was the soundboard to the Board / Company in addressing the relationship issues in a full blown competitive process (when a bank’s pressure and communication may blur clarity in the decision making process)
  • JCRA provided clear communication to the banks, with realistic time goals and objectives
  • We carried out a clean execution process ensuring all parties expectations were managed and met properly
 

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