Clients' Success
Three-year $25 million default protection on a B- rated buyer
Fortune 100 company purchases payment protection against sub investment grade buyer. Allows client to waive prepayment requirement by transferring credit risk to a AA rated guarantor. Protection is non cancellable, and payable with 14 days of default.
Energy marketer increases select sales by 65% within one year
An energy marketing company was forced to limit certain sales based on individual credit lines assigned to the buyers. Securitas structured a unique risk credit transfer solution that allowed the marketer to increase those credit limits. As a result, the company increased sales by $32 million for a premium of $60,000.
U.S. based resort owner obtains $280 million refinancing for three properties in Latin America
Securitas structured an interest only debt instrument in the capital markets and used an insurance solution which ultimately allowed the loan to be securitized. The benefit to the hotel owner was excess cash of $80 million with no change in debt service.
U.S. exporter monetizes foreign receivables
A U.S. exporter was denied the ability to finance foreign receivables by their lending institution. Securitas developed a solution that mitigated the underlying credit and political risk inherent with trade receivables from overseas buyers and the lender agreed to finance the assets.
Food distributor overcomes concentration constraint in borrowing base
A receivable concentration clause created a borrowing constraint for a distributor due to significant credit exposure to a privately held grocery retailer. The bank widened their borrowing base parameters after Securitas helped structure a solution which combined self insurance and credit risk transfer on the private buyer. The impact was an additional seven figure availability for the distributor.
U.S. exporter obtains coverage on sovereign Venezuelan buyer in August 2007
A U.S. company won a material order from Petroleos de Venezuela, S.A. (a Venezuelan state-owned enterprise) for the construction of a dry dock. Securitas successful placed non-honoring of payment obligation coverage with a Standard and Poor A+ counterparty.
U.S. manufacturer transfers credit risk on tier 1 automotive supplier prior to insolvency
A U.S. manufacturer became concerned with their credit risk to Tier 1 automotive supplier. Securitas facilitated the placement of a distressed debt put option on the company the week they filed for bankruptcy. As a result, the manufacturer protected their cash flow by mitigating the impact of insolvency.
One year $100 million payment guaranty for crude oil shipments
Major US oil producer gets payment protection on Asian credit for monthly loadings of 1 million barrels. Allows producer to extend credit and payment terms.
Utility replacement power cost guaranteed during outages
A U.S. based utility lost $150 million over 12 months due to replacement power purchases during unplanned outages of certain generating units. Securitas helped by arranging for utility replacement power cost guarantees during outages.
Five-year, $60 million guaranty on Ecuadorian credit
A lessor of power barges entered a five-year agreement to provide electricity to Guayaquil, Ecuador. The lessor's bank denied the financing due to political risk exposure but Securitas was able to secure a five-year $60 million guaranty on Ecuadorian credit.
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