Evaluating OPTIONS

摘要

A myriad of choices exists for funding an ethanol project in 2017. While ethanol companies most likely are familiar with all the different financing options, deciding which works best for their specific projects can be a challenge. Multiple factors need to be considered, but it should start with a review of the plant's current leverage and available capital, in terms of the overall direction the board intends to take with the facility, says Connie Lindstrom, senior biofuels analyst for Christianson PLLP. "Planned future growth may indicate a need for more equity investment, or a decision with regard to reinvestment of profits versus dividends to owners," Lindstrom says. "On the other hand, when considering a technology upgrade to boost productivity at a plant with low current debt, taking on long-term debt may be more appropriate."