Central States management made the decision to bring in Periculum to run the bank process rather than going it alone given the ongoing turmoil in the financial markets and the need to provide the necessary focus on the process. The Company desired a multi-year structure that would meet its highly seasonal working capital needs. In recent years, multi-year credit facilities have been challenging to obtain.
Periculum advised the Company on positioning and marketing its story which resulted in a significant over subscription and achieved highly competitive market pricing and terms, as well as multiple participant banks. As advisor, Periculum’s role included obtaining and vetting various bank proposals in order to arrive at terms suitable for the Company’s needs, locating potential participant banks familiar with the Company’s industry, and assisting in the closing negotiations and documentation. As a result of Periculum’s efforts, Central States obtained a 3 year revolving facility with an Agent Bank and bank group capable of supporting its long term growth initiatives.
Central States' activities in the domestic grain markets involve extensive rail and river barge shipments, covering virtually all areas of significant corn and soybean production in the United States. The Company’s sources for grain include its own Indiana based grain terminal facilities, farmer cooperatives and other corporate and privately owned terminal facilities. The Company’s base of clients include large poultry and hog integrated operations, commercial feed mills, corn and soybean processors, ethanol producers, flour millers, Canadian, Mexican, and Eastern European feed manufacturers, and export operators in the Gulf of Mexico.
In this current economic environment Periculum Capital Company, LLC is highly focused on the debt placement needs of middle market companies. In addition, Periculum continues to be very active in its Merger and Acquisition, Private Placement financing, and Merchant Banking practices.