ABOUT STRUCTURED COMMODITIES
Companies that produce, process, trade, market, distribute or consume commodities are subject to unique risks due to price volatility. Often, those companies have established banking arrangements that do not fully meet their needs during volatile market conditions. Companies with viable, on-going businesses may find themselves with severe liquidity problems if their financing does not adjust to meet market changes. Structured Commodities assists commodity companies to identify appropriate financial institutions that provide financing suitable to the company's unique needs. Often, those institutions provide non-traditional financing arrangements that serve as an adjunct to the borrower's existing bank lines. For instance, we negotiated and placed a $50 million commodity inventory repurchase facility for a company as an alternative source of funding distinct from that company's $325 million revolving credit facility. In addition to repurchase facilities, Structured Commodities can assist in securing throughput financing arrangements and other hybrid financial products incorporating risk management and financing. Structured Commodities also has raised working capital lines for its clients. Additionally, Structured Commodities can assist clients in raising mezzanine debt and risk capital to support their business.
Structured Commodities maintains relations with financial institutions that provide credit facilities for commodity companies including working capital lines and financing for margins on hedges; which is vital to protect the borrower from liquidity problems during volatile markets.
