Business Capital Secures $25MM Mezzanine/DIP Loan for Agricultural Land & Real Estate Development Client
Our Client is a 3rd generation farmer who has been involved in agriculture and real estate development for over 30 years. He has successfully acquired a portfolio of land in the Central Valley of California, which includes over 17,000+ acres used to farm cherries, apricots, peaches, almonds, and for grazing. Our Client is also a real estate developer, completing 830 acres of a commercial “Business Park” property. Of this, 91 acres were sold to a buyer for $15MM who built a 1.5 Million SF distribution center for a major furniture and home goods business. He currently manages the remaining commercial and agricultural assets.
Inclement weather and prolonged drought in California had an adverse impact on crop yields. With the improved climate and increased productivity of crops, combined with highly favorable real estate values in this state, all signs and expectations show a significant return to profitability. The incumbent bank was unable to renew the loan based on the Company’s previous history.
Business Capital was introduced by the client’s turnaround/accounting firm and was able to clearly underwrite the complexity of the seasonality, asset mix, and strategic restructuring plan to secure the mezzanine loan necessary to provide increased liquidity. This will allow the client to move forward with operations and realize expected revenue growth.
“Farmers are a critical part of our country’s wellbeing – past, present and future. We were privileged to assist our Agriculture client at a crucial crossroads. This transaction is a prime example of the value our firm can add by providing rescue financing in a short time frame. At a time when supporting our agricultural systems is a necessary and powerful strategy for revitalizing our economy and ecosystem, this type of financial solution can provide a significant boost to the farming industry.”– Chuck Dole, Managing Director, Business Capital