Rl shrugs off credit
crunch uncertainty
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further. To do that we would have to provide more services, includ-
ing cash management. But setting up the infrastructure would require
considerable investment, with no guarantee of the required returns."
This is why right now, Rl is concentrating on carving out a niche in
Europe, with a strong focus on F&A and a secondary focus on TMI and
renewable energy. However, both men still see a lot of growth poten-
tial in Europe, as the bank increases the cross-selling of M&A, financial
markets, structured fïnance and other services.
"We've already increased cross-selling a lot and we fully expect this
to continue. Let's face it, you will never build a profitable relationship
with a dient based on lending alone. So we have to cross-sell", says Ten
Heggeler. However, he adds, Rl has to be careful not to overstretch. Fur
ther growth will require focus, focus and more focus. "We have to focus
on F&A, focus on cross-sell and focus on our chosen clients. Basically, we
have to focus on what we do best."
about the project, fully in line with the development strategy of their
recently set-up subsidiary for premium wines, called Underdog. After
the initial contacts, the M&A team, which also included Rodney Hureau
in New York, actually kicked off the project in December 2007 and the
alliance was already a fact by early April of this year. "It's a perfect match",
says Armando, "combining Osborne's wine-making skills with TWG's
unparalleled route-to-market in the US.The cliënt was extremely pleased
with the partnership structure forged by Rabobank, which maximises
Osborne's profitability and ensures the parties' long term commit-
ment."
Just as important, the deal further confirms the business potential of
the co-operation between Rl Europe and AmericaSj.with 2007 cross
border M&A transactions being four times more numerous than in 2006.
Armando believes the deal will create opportunities for more M&A
mandates in the future.
"It has certainly further strengthened our relationship with TWG, enhancing
Rabobank's strategie dialogue with the CEO. Furthermore, this transac
tion is a terrific marketing tooi to show existing and potential clients
just how much we can do for them." "Fernando Garcia, who originated
the deal in Spain together with Sergio Diaz de Rabago, RM to Osborne
in Spain, concludes: 'This is the second time we act as M&A advisor to
Osborne, and we are already in conversations for new M&A engage-
ments, which clearly shows how strong our relationship is, based on
Rabobank's ability to deliver strategie solutions to Osborne".
Rabobank's dealing room in Utrecht the Netherlands.
Despite extremely challenging market conditions, acting as
sole co-ordinating mandated lead arranger, in February 2008 Ra
bobank International successfully placed 275 million of senior
and mezzanine debt for the acquisition of Dutch coffee compa-
ny Drie Mollen, by private UK equity firm CapVest Equity Part
ners. The deal was striking as the very fïrst post-credit crunch
European buy-out deal and a testament to the hard work and
incredible co-operation across numerous Rl departments, says
Björn Stibbe of RI's Utrecht-based Leveraged Finance team. It
was also a perfect example of multi-product delivery. Not only
did Rabo Securities act as sole sell-side advisor, Rl Leveraged
Finance and Loan Syndication originated the financing and Rl
was the only party prepared to solely underwrite the transac
tion.
Due to post credit crunch uncertainty, a number of other banks
initially involved in the transaction, pulled out hoping for calmer
waters, but Rl decided to go ahead, believing there was little
chance of any imminent improvement to the market. Both the
buyer and the seller wanted certainty of financing and that is
exactly what Rl provided, says Marin Boon of Leveraged Finance.
"We structured the deal and then the syndication group sold
down our exposure. In fact we did such a good job the under-
written exposure was oversubscribed."
The co-operation was phenomenal, Stibbe adds, as the trans
action involved relationship managers, the research team, loan
syndication and others. "Just about the only people we didn't
work with was M&A and they were working on the deal for the
counterparty. So it was win-win all round."
Of course, it helped that the bank had such a close relationship
with Drie Mollen and the vendors, a relationship Rl has certainly
deepened following the successful execution of the transaction.
'The buy-out market is always event-driven and it's difficult to
create events that make full use of all our capabilities. But what
this proves is that we are creative and proactive enough to take
these events and put together a transaction that does just that
to our clients' benefit. And we can only do that by calling on the
expertise of our colleagues right across the bank. And given that
this deal was being watched with a great deal of interest, due to
the market conditions, I believe we've shown a lot of people just
how good we can be", Stibbe says.
issue 16 THE WORD