Helping a Global Bank’s Investment Banking team work through backlog with Real-Time Support on Borrowing Base Redeterminations
Client: US Bank
Objective
To provide ongoing support to the investment banking team of a US bank help keep pace with borrowing base redetermination (BBRD) requests for reserve-based lending (RBL) to oil & gas (O&G) companies during peak Spring and Fall seasons.
CRISIL’s Solution
- CRISIL set up a team of analysts at the client’s Houston office
- Supported the client for borrowing base redetermination for ten consecutive seasons; project ongoing
- Assisted the client across the entire RBL value chain, from deal inception, to liaising with key stakeholders (CRM, Valuation, IBD team) and memo closure
- Prepared detailed borrowing base/engineering models, corporate projections and historical unit models; built and updated credit memos
- Prepared and updated 30-40 BBRD cases on an average (models and memos) per bi-annual season (Spring and Fall)
- Liaised with multiple teams (including Deal and CRM) for timely closure
Client Impact
- Freed up bandwidth of the onshore team for higher-value activities during the busy reserve base redetermination season
- Provided real-time support for new deals: quick turn-around within two business days of the request
- Cleared review backlogs to resolve operational and regulatory challenges