PMC Treasury > Case Studies > Case Studies > Foreign Exchange > Treasury Solution FX Redenomination – Specialty Chemicals

FX Redenomination – Specialty Chemicals

FOREIGN-EXCHANGE-OT-FX-Redomination-Speciality-Chemicals
Client Brief

A specialty chemicals business with global operations had cash flows in a number of currencies. Financing for the acquisition was through a EUR facility with the option for some currency redenomination.

PMC Solution
  • Analyze the EBITDA currency mix;
  • Work with the client’s bank to negotiate the spread over an agreed reference forward FX rate for redenomination purposes;
  • Orchestrate the execution of the redenomination transaction.
Results & Recommendations

Following analysis that pointed to EBITDA being predominantly in EUR and USD, the business recognized that it would be prudent to redenominate some of its debt from EUR to USD. By so doing, the underlying currency of the debt would be aligned with the exposures inherent in the operating flows.

Through our methodical analysis and a series of structured negotiations, we were able to facilitate a straight forward and effective deal execution process.