Client Position:
This deal started in March 2013 when the client received a finance offer from an alternative bank for a $5,700,000 agribusiness facility. RSP were asked to review the offer, which while fair on a pricing basis, had security provisions and loan covenants adverse to the clients business. This would then create an element of funding risk to the client for their mixed farming operation. On the back of this advice, RSP was then engaged by the client to identify a better finance solution.
RSP Solution:
RSP conducted a full credit analysis of the business, represented and mitigated the client’s funding position and project managed the financer tender. The result of the RSP tender process was a successful offer made by an alternative bank that included competitive pricing (a saving of $50,000pa), excluded security over some assets required by other lenders, and had standard loan covenants only. The client also now has access to a dynamic and well-resourced relationship manager.
