September 2022
Context
Support Fraikin in renewing its securitisation programme, ensuring sustainable financing of its fleet and growth in France, the UK and Spain.
Tasks
- Increase the quantum of funding
- Reduce the funding costs
- Simplify the structure
- Improve risk measurement processes
Actions
- Pool selection (review of new asset classes/ geographies)
- Drafting of Request for Proposals, assistance in the selection of arrangers and the negotiation of funding terms with bank lenders
- Support in the negotiation of arranger mandate
- Technical assistance with understanding of pool credit risk (definition of default, cohort analysis, default rate computation, portfolio loss profile, definition of portfolio triggers, S&P rating methodology)
- Negotiation of business terms (term sheet, documentation)
Results
- Current securitisation programme enhanced through issuance of a junior (« BB » equivalent) note
- Cost of investment grade funding reduced by 20% compared to current securitisation
- Structure streamlined and simplified, easier to read for investors
- Improvement of data collection process
In the press
FRAIKIN, the European leader in commercial vehicle leasing, announces that its fleet financing securitisation programme, was successfully refinanced last December for a period of 3 years and a total commitment amount of EUR 1,45 billion. FRAIKIN was advised in this project by Accola / Redbridge DTA, financial advisor… Continue reading.