Thursday, 22 December 2011

Applying Level I - GE Capital Renews and Expands Credit Facility for Hensall Co-Op

Corporate Finance is an important study session in the CFA Level I curriculum. It gives a comprehensive understanding of working capital management, proforma financial statements, share repurchases, WACC etc. The following article from CNW relates to what the candidates have been studying in Corporate Finance.
TORONTODec. 22, 2011 /CNW Telbec/ - GE Capital, Corporate Finance today announced that it has provided an $80 million revolving credit facility to Hensall District Co-Operative, the largest independent agricultural co-op in Ontario representing about 4,400 member farmers. The facility will be used to refinance Hensall's existing debt and support growth, and includes a $15 million accordion to meet peak seasonal needs.
Founded in 1937, HDC operates 14 locations supporting procurement, processing, marketing and distribution of edible beans, soybeans, grains and fertilizers. HDC also supports its members and customers in over 40 countries by operating feed, petroleum, propane and global logistics businesses. In fiscal 2011, HDC had total sales of $466 millionand net profit before distributions to members and income taxes of $9 million.
"As we've expanded our scope of activities in recent years to better serve our members, growing by 40% last year alone, we appreciate having a financial provider with the resources of GE Capital," said Earl Wagner, chief executive officer of Hensall. "We see GE as a partner in our development, not simply a bank, as they have shown the ability to look beyond the ups and downs of a commodity-driven industry and find ways to help us grow."
"We're very pleased to be able to expand our relationship with HDC as they build their operations," said Ellis Gaston, managing director, GE Capital Corporate Finance, Canada. "Our domain expertise in this industry and our ability to provide the entire facility are important advantages for HDC."
About GE Capital, Canada
With more than 20 offices throughout Canada, GE Capital ( offers a wide variety of financial products and services to address commercial financing and fleet management needs in all phases of a business' lifecycle. From equipment finance to working capital and growth financing to large asset-based and restructuring loans, we apply our wealth of industry expertise and develop custom solutions for your company. Some of the industry sectors we specialize in include transportation, construction, healthcare, agriculture, forestry, manufacturing, oil & gas, wholesale and retail, restaurant and hotel franchise.
GE Capital offers consumers and businesses around the globe an array of financial products and services. For more information, visit or follow company news via Twitter (@GECapital).
GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's website at

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