A Mexican telecommunications company has constantly expanded its infrastructure through the signing of revolving and syndicated loans. However, the company wants to perform a corporate refinancing to extend loan terms without implying a constant renegotiation and reduce interest payments. For this reason, the company plans to take advantage of the low interest rate environment in the international markets; therefore, it decided to issue a Eurodollar bond.
Through an exhaustive due diligence, the Company decided to contract IRStrat’s Debt Issuance solution, with the mandate to ease the Eurobond issuance, shorten the execution time and minimize the cost of the instrument.
IRStrat performs a preliminary market study and assesses the client's issuance scope in the international debt markets, to elaborate a detailed action plan for achieving an optimal placement. Likewise, IRStrat prepares a work agenda detailing the precise steps to complete the filing of the Eurobond prospectus and determine its indenture.
Our team, working with the senior management, begins to develop the company’s investment thesis, history and competitive advantage, as well as the communication style (qualitative and quantitative) and an optimal communication strategy.
IRStrat implements a thorough training of our client's executive team in roadshow presentations, face-to-face meetings and specialized forums. The Prospectus and investor presentations are insightfully prepared, and a clear and impactful fact sheet containing the investment thesis and positive aspects of the instruments is developed.
IRStrat carries out the targeting and beauty contest of the underwriter syndicate, the targeting of institutional investors, the national and international roadshow, and elaborates a proxy of the closed book. Likewise, an intensive lobbying is carried out with investment and pension funds, as well as presentations with family offices, endowments, credit rating agencies, specialized media and blue-chip mutual funds.
Our client successfully carried out its 300 million-dollar Eurobond placement with a 7-year term and a cost of debt 250 basis points lower than its previous debt structure of short-term revolving credit lines; producing substantial savings to its treasury. The closed book was composed of long-term investors, mostly mutual funds and pension funds, with a minimum participation of hedge funds and other alpha generators.