The vice president in SouthBank's Corporate Banking Group was reviewing an opportunity for SouthBank (SB) to offer to become the agent bank in a $120 million revolving credit facility for Prime Micro Inc. (PMI). SB's opposition for the agent's position would be Texas Trade Bank (TTB), which had been PMI's lead bank for a long time.
Despite the attempts to displace TTB over the past few years of SB, this was SB's first real chance to acquire representative status. As agent bank on this particular bargain, SB would likely be looked at by PMI as its lead bank, which, due to the considerable banking needs of PMI, would let SB to realize noteworthy fee income in the foreseeable future. The vice president was apprehensive about PMI's creditworthiness, although delighted with the prospect of getting PMI as a brand new client.
Prime Micro Inc. Case Study Solution
PUBLICATION DATE: December 05, 2011 PRODUCT #: UV5665-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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