Business Capital (BizCap) structured and secured a $32 million term loan for a California Rancher owning a 5,200 + acre property located in the Central Valley. The Client has been selling and conveying water for 25+ years, primarily to farming operations and water districts. In an agricultural and municipal system as large as California's, water is in high demand and the ability to access, bank and control it for future distribution is critical.
The Client had an incumbent loan that was coming to maturity and required a specialized structure in order to pursue additional lucrative water contracts, even before they were executed. Business Capital was brought in by the Company's financial adviser to assist with the complexity and speed needed for this transaction. BizCap was able to clearly underwrite the fluctuation in supply and demand, the effect on pricing, and secure an agriculture loan to support the Client's strategic business goals.