KANSAS CITY, Mo., July 24, 2008 (PRIME NEWSWIRE) -- FCStone Group, Inc. (Nasdaq:FCSX), a commodity risk management firm, today announced the closing of syndicated credit facilities between its wholly owned subsidiary, FCStone, LLC, and a lending syndicate consisting of BMO Capital Markets, Bank of America, N.A., Deere Credit, Inc., and CoBank, ACB. The new facilities will increase the size of the Company's primary debt facilities by a total of $140 million to $305 million. Specifically, the size of the Company's revolving credit facility has been increased by $100 million to $250 million, while the Company's subordinated debt facility has been increased by $40 million to $55 million.
The new syndicated bank facilities will provide FCStone, LLC additional sources of funding to support continued growth in its business, increased margin requirements at various exchanges and highly volatile markets that may result in an increased need for regulatory capital. FCStone, LLC will use the revolving credit facility to fund potential margin calls with exchanges pending collection of such margin calls from its trading customers, while the subordinated debt will allow FCStone, LLC to increase its level of regulatory capital if required by future market conditions and business growth.
"We believe these new credit facilities from four respected financial institutions during a time of constrained credit markets, demonstrate their confidence in the financial strength of FCStone and our future prospects," stated Pete Anderson, President and Chief Executive Officer of FCStone. "These facilities will provide financial resources to allow us to capitalize on the ongoing need for our services and to continue to grow our business."
BMO Capital Markets is serving as the administrative agent for the revolving credit facility and the Agent for the subordinated debt facility. BMO Capital Markets and Banc of America Securities LLC served as co-lead arrangers for the revolving credit facility. BMO Capital Markets and Deere Credit, Inc. served as co-lead arrangers on the subordinated debt facility.
About FCStone Group, Inc.
FCStone Group, Inc., along with its affiliates, is an integrated commodity risk management company providing risk management consulting and transaction execution services to commercial commodity intermediaries, end-users and producers. The firm assists primarily middle market customers in optimizing their profit margins and mitigating exposure to commodity price risk. In addition to risk management consulting services, FCStone, LLC, operates one of the leading independent clearing and execution platforms for exchange-traded futures and options contracts. FCStone Group, Inc., serves more than 7,500 customers and in the 12 months ended May 31, 2008, executed 98.8 million derivative contracts in the exchange-traded and over-the-counter markets. The FCStone Group companies work in all the major commodity areas including agriculture, energy, renewable fuels, foods, forestry, cotton and textile, dairy and currency exchange. Headquartered in the Midwest, it has offices located throughout the world and is a clearing member of all major North American Futures exchanges. FCStone Group, Inc., trades on the NASDAQ Global Select Market under the symbol "FCSX."
Forward Looking Statements
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