Financely Group offers advisory services to companies requiring Standby Letters of Credit (Standby LCs) for transactions with the Electric Reliability Council of Texas (ERCOT).

Our service is tailored for companies looking to secure Standby LCs without heavily impacting their cash flow. We work with banks that provide Standby LCs with collateral requirements between 35% to 50%.

Service Fees:

• Flat Sourcing Fee: $82,500 for sourcing and facilitating the deal.
• Success Fee: 2% of the LC amount (minimum $200,000) upon successful closing of the LC issuance.
• LC Size: We specialize in transactions requiring Standby LCs of $10 million and above.

Our Process:

1. Initial Consultation: We assess your company's needs and outline the process for securing a Standby LC through our banking partners.
2. Bank Selection: Based on your specific requirements, we recommend banks that offer the most favorable terms and guide you through their application processes.
3. Application Support: Our team provides end-to-end support during the application process, ensuring all documentation and requirements are accurately completed.
4. Closing: Upon successful issuance of the Standby LC, our success fee is applied.

Covenants and Security Agreements Overview:

• Covenants: As part of the Standby LC issuance, companies will be required to adhere to certain covenants. These may include financial ratios to maintain, restrictions on further debt acquisition without consent, and regular financial reporting obligations.
• Security Agreements: The Standby LC may require a security agreement, detailing the collateral provided against the LC. This can range from cash collateral to other forms of security acceptable to the issuing bank, within the 35% to 50% collateral requirement range.

Why Choose Financely Group:

• Expertise: We have a deep understanding of the energy sector and the financial instruments that facilitate transactions within it.
• Customization: Our services are tailored to meet the unique financial and operational goals of each client.
• Efficiency: We streamline the process of securing Standby LCs, minimizing the impact on your company's liquidity and allowing you to focus on your core business.

For companies engaged in transactions with ERCOT requiring Standby LCs, Financely Group offers a strategic pathway to securing these financial instruments efficiently and cost-effectively. Contact us to learn more about how we can assist your company in navigating this process with ease.

For more information on how we can assist with your next transaction using Back-to-Back LCs, please book a consultation or request a quote.