Transition Financing Summary
Loan Amount: $13,000,000
I/O for 5 years
Semi-annual payments
With more than 30 years of experience, these individuals operate an almond and raisin grape ranch in the Central Valley of California. Over the last eight years, they have been implementing a plan to redevelop 420 acres of their land, transitioning a portion of their raisin grape production to conventional almonds. This strategy has been employed in order to diversify and promote strong net cash flows from farming operations. Raisin yields have remained strong over time and almond yields are increasing on an above pace as the orchards gain in maturity.
The interest-only period will enhance cash flow while the raisin land is cleared and prepped for almond production. Loan proceeds will purchase potted, two-year-old almond trees, fast-tracking time needed for full maturity production. At the end of the I/O period, the almond production will be sufficient to service debt on conventional financing.
