23 Mar Agribusiness Settlement Success Story
An established agricultural client was seeking to execute a material expansion via way of geographic and enterprise diversification to their core beef cattle enterprise. The expansion was technically more complicated due to a joint venture structure regarding the property purchase. Their encumbered bank was ultimately too slow with their response when speed to market was required to secure the property.
RSP spearheaded the credit analysis, structuring and presentation to a panel of banks. The response was well received and decisive. The new bank embraced the client with exceptional enthusiasm and support for their ventures. The client secured the property and achieved a major economic benefit with a very favourable pricing adjustment to their existing and new debt facilities.
Purpose: Farm Finance Review / Property Purchase
Equity: > 65%
Loan Amount: $15.4m
Risk Rating: Satisfactory and Improving
Interest Rate: 1.65%
Lender: Refinance – Mainstream bank
Savings: $300,000 p.a.