Napa, CA
United States
About
Cash and letters of credit are the primary forms of collateral utilized to secure energy transactions; however, liens and lockbox arrangements have become more popular as energy companies seek to unlock underutilized value on their balance sheet. From IPPs in the Northeast to CCAs in California, these alternate forms of secured credit are being utilized to enable energy companies to enter into transactions as diverse as daily gas sales to long-term renewable PPAs. While these forms of collateral can provide solid protection from credit losses and open up significant transaction opportunities, they can also create unique challenges from an administration and collection standpoint.
1 hour CPE - Finance
Objectives
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This session will provide an overview of some of the benefits and challenges of utilizing liens and lockboxes to secure energy transactions. Attendees will learn about how these forms of collateral can help mitigate risk, and some of the pitfalls to avoid when evaluating the addition of liens and lockboxes to their credit toolbox.
