McQueen hosted a breakfast and Panel discussion at The Haymarket Hotel in London for finance directors of consumer companies.  The Panel comprised Martin Beer (Finance Director, Uniq PLC), Paul Inglett (Finance Director, Marstons PLC), Matthew Roberts (formerly Finance Director of Debenhams and Gala Coral) and Jeremy Walsh (Partner, Travers Smith) together with Clive Baker and George Fleet of McQueen.

The key points that emerged from the discussion were:

• Keep close to your existing banks both in terms of their people and their decision making process and make sure that they are well informed about the business and its prospects; but also make sure that you cultivate relationships with other potential lenders;
• Start planning early (ie 12 – 18 months before your existing facilities mature) to give you plenty of flexibility and to allow the banks sufficient time for their extended decision making processes;
• Whilst your existing banks are the most likely providers of new facilities, develop at least one other option so that you have some negotiating power and a fall back position should Plan A fall down;
• Be prepared to provide the banks with much more information than you have in the past – both in terms of getting credit committee approval for the new facilities and throughout their term;
• When you are ready, present the banks with the information that they need and a clear proposal and process – in the current market they respond much better to solutions (albeit subject to negotiation) than to problems;
• For structural reasons, banks are unlikely to lend longer than 3 years;
• You should expect margins and fees to be a multiple of the current levels;
• Documentation has become very lender friendly with much greater attention on the precise definitions of covenants and some potentially toxic default clauses being sought.
• The overall message was that whilst it is a difficult and unpredictable market in which to refinance it can be done provided that borrowers start early, have a very clear idea about their own and the banks’ needs and requirements and provide leadership throughout the process.

A short presentation was given which can be viewed by clicking here