Finacity and NordLB have agreed to increase a trade receivable securitisation facility for Alliance One International (AOI), a US-based firm involved in the purchasing, processing and sale of leaf tobacco around the world. The facility has now been increased to US$100mn, and features improved pricing and an extended 3.5-year maturity to due to end in March 2013.
The deal features a Finacity-owned special purpose entity (SPE), which purchases receivables from the sale of agricultural commodities to both non-OECD and OECD domiciled customers. The SPE is expected to provide Alliance One with risk-mitigated monetisation through the ongoing securitisation of trade receivables generated by a Swiss-based subsidiary of AOI.
"We are very pleased with the upsize of this innovative structure, which is in line with AOI's strategic financial goals. Through a sale structure the transaction puts to use strong AOI assets, and offers the company an additional opportunity to utilise the capital markets at attractive pricing levels, while further deleveraging our balance sheet. The modified structure also offers AOI an improved liquidity source, enhancing our financial flexibility”.
Reader Comments