Periculum Capital Company, LLC (“Periculum”) is pleased to announce that it has completed the placement of a $240,000,000 three-year Revolving Loan for Central States Enterprises, LLC (“CSE” or the “Company”). The loan contains an expansion feature that allows the Company to increase the facility to a maximum of $365,000,000.
Headquartered in Heathrow, Florida, with significant operations in Indiana and an international trading operation, CSE decided to use Periculum to run its bank financing process rather than go it alone due to ongoing economic uncertainty and the need to provide resolute focus on the process. The Company desired to maintain a multi-year structure that would meet its highly-seasonal working capital needs in a volatile commodity market exacerbated by the 2012 drought and sluggish global economic environment.
As the Company’s ongoing financial advisor, Periculum used its extensive financing market knowledge and experience to advise the Company on positioning and marketing its story, resulting in a significant over subscription from multiple participant banks and highly competitive market pricing and terms. Periculum’s role included obtaining competitive bank proposals that provided terms suitable to the Company’s needs, working with participant banks, and assisting in the closing negotiations and documentation. As a result of Periculum’s efforts, Central States obtained a three-year revolving facility with an Agent Bank and bank group capable of supporting the Company’s working capital needs and 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 of grain include its own Indiana based grain terminal facilities, farmer cooperatives and other corporate and privately owned terminal facilities. The Company’s clients include large poultry and hog integrated operations, commercial feed mills, corn and soybean processors, ethanol producers, flour millers, Canadian, Mexican, and Polish grain consumers, and export operators in the Gulf of Mexico.
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