MEDIUM-TERM FACILITIES

PEFCO’s medium-term facilities provide lenders with a dependable secondary market buyer of multi-year loans financing the export of United States capital goods exports and services. PEFCO offers two medium-term facilities:

• Guaranteed Note Facility: for notes guaranteed under an Ex-Im Bank medium-term guarantee (ECP MGA)
• Insured Note Facility: for notes insured under an Ex-Im Bank medium-term “documentary” insurance policy

All Medium-Term Facilities have similar features.

• The lender is PEFCO’s client. PEFCO does not purchase notes from exporters.
• All PEFCO purchases are without recourse to the lender.
• PEFCO will purchase any note structure acceptable to Ex-Im Bank, including financial leases.
• Note amounts range from $10,000,000 to $100,000, and possibly smaller.
• PEFCO will purchase
  • Single note or portfolios
  • New notes or partially-repaid notes
  • Single-disbursement or multiple-disbursement notes
  • Buyer credits or supplier credits
• PEFCO interest rates can be floating (LIBOR + spread) or fixed (USTNote + spread).
• The lender typically retains full control over collection of payments, loan documentation, the Ex-Im Bank guarantee or policy, and the processing of claims. PEFCO holds the original note. PEFCO will collect payments for an additional fee.

Small Business Initiative: a PEFCO undertaking to support loans financing small business not efficiently served under PEFCO’s standard formats.