AloStar Business Credit Inks Facility to Southwest Georgia Ethanol
AloStar Bank of Commerce said it has provided a $20 million secured revolving credit facility for Southwest Georgia Ethanol (SWGE), Georgia’s largest corn ethanol producer. SWGE emerged from Chapter 11 bankruptcy earlier this year, and has operated at full capacity for the past 12 months. AloStar’s secured credit facility will help the plant respond to variable pricing in the corn futures market, with the bank also implementing a hedge reserve to minimize risk to the company from changing corn prices. Corn is the key raw material for the plant, which annually grinds more than 36 million bushels of corn.
“Like many of our customers, SWGE has a unique need for capital driven by its business model,” said Andy McGhee, president of AloStar Business Credit, the bank’s lending arm. “The AloStar team understands the industry and the model and has implemented a creative strategy that will help Southwest Georgia Ethanol operate at capacity while managing the price swings in corn supplies.”
“A financial partner who understands our business is critical for the success of Southwest Georgia Ethanol,” said Murray Campbell, president of SWGE. “As we operate at capacity in a post-restructuring environment, it is crucial to have bankers who can help us meet our current cash needs and are ready to help us grow our business. We appreciate AloStar