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

Questions

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