FCStone Group increases size of credit facilities
By
Associated Press
July 24, 2008
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FCStone Group Inc., a commodity risk management firm, said Thursday it has reached deals to increase the size of its credit facilities by $140 million, to $305 million.
The company's revolving credit facility has been increased to $250 million from $150 million. The company's subordinated debt facility was increased to $55 million from $15 million.
The facilities will be used to grow FCStone's business and meet increased margin requirements at exchanges, the company said.
The revolving facility will be used to cover margin calls from FCStone's trading customers. The subordinated debt will allow FCStone to increase its regulatory capital level if required by future market conditions or business growth.
BMO Capital Markets, Bank of America NA, Deere Credit Inc. and CoBank ACB are providing the credit facilities.
Shares of FCStone fell 92 cents, or 4.7 percent, to $18.48 in afternoon trading.
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