Hedge Financing

RetailJoke — Wed, 06 Aug 2008 14:45:08 -0400

This is a pretty popular subject given the volatile commodity markets.

Have any of you seen it in action, have you worked on any financial models in REAL companies? What are some of the assumptions the bankers use in order to implement a financing package? We are looking at a non-rated, small company.

I imagine it looks something like this:

Comp produce 1M barrels of stuff (current spot of $120),
They sell short on the futures market (receive cash),
Deliver physical commodity against the contract,
They must use bank financing to fill in any cash flow needs.

Any wisdom is appreciated! Cheers!

Rule 144a & Restricted Securities

RetailJoke — Thu, 24 Apr 2008 15:22:01 -0400

Hi. I have a question for the Group. Sorry if this is too elementary.

I work for a hnw / institutional-like person purchasing restricted securities. This is his investment approach verses open market transactions.