ContiGroup
deals
Landing the largest cooperative
New financing negotiation
didyou know
COMPANIES, INC.
What's NewS Issue 5 August/September 2000
Cooperation between our teams in
New York and Chicago has reaped
major returns - with the suceessful com-
pletion of a general syndication phase to
provide new financing for Farmland In
dustries, North America's largest farmer-
owned cooperative. One of the largest
lead agented transactions ever completed
by RI, the deal team was able to negotiate
a refinancing of the company's existing
credit facilities. Farmland was undergoing
a cyclical downturn to its key fertilizcr-
manufacturing segment, and was recover-
ing from an unsuccessful attempt to
merge with another US farmer-owned
cooperative. The deal serves as a bench-
mark in RI's presence in the North Ameri
can F&A market.
The key to success in the deal stemmed
from a 'team approach' - RI, as co-lead
syndication agent, joined
with CoBank and assem-
bied a group of four other
banks to fully underwrite
the financing. The final
phase, completed on 12
July, resulted in a general
syndication with an even
larger number of financial
institutions, thereby reduc-
ing RI's final commitment
to its hold target. Addi-
tionally, the Farmland
transaction resulted in a
significant increase in RI's
ongoing relationship in-
come with little change in
solvency used. The underwriting gener-
ated the largest fee income for a single US
transaction syndicated by RI in 2000.
The Farmland system and its thousands of
cooperating farmers are committed to
helping producer-owners achieve long-
RI's New York syndications group, in
conjunction with the Dallas Office,
successfully lead managed the closing of
the syndication of a new financing for
ContiGroup Com|
Group is a diversi-
fied F&A com-
pany with core
activitics cen-
tered on cattle
feeding, poultry
production and
processing, and hc
tion. The USD 400 million revolving
credit facility was used to refinance exist
ing debt and to provide for working capi-
tal and other corporate purposes.
The suceessful syndication strategy in-
volved the invitation of four co-agents
early in the process, selected for their
knowledge of the company and the indus-
try, to underwrite the deal. RI's exposure
was reduced to the approved hold level in
mm
term success and secure the cooperative
system in the global food and agribusi-
ness. Farmland strives to provide produc
ers an economie edge while improving
cost efficiency and achieving the highest
environmental standards. The cooperative
continues to refocus its businesses to add
greater value to its members and is ex-
panding its presence in pork, beef and
grain marketing.
Key members of the deal team: corporate
banking - Tom Levasseur, Bob Bucklin,
Bruce Baccus, Ivan Rodriguez, Jirn Purky
and Elizabeth Larrison, capital markets/
syndications - Sheldon Sussman, Michael
Butz, Holly Hellman, Wink Mora and
Nadar Pasdar; legal - Brett Delfino, and
credit - Ned Peyser and lan Reece.
the general syndication, which attracted
an additional seven banks, bringing the
bank group to a total of 11. Amid doubts
from Conti's long time agent bank regard-
financing,
ransaction
nd posi-
tioned RI at
the top of
the com
pany's list
of relation
ship banks.
Addition-
ally, the deal resulted in a significant in
crease in RI's income from the cliënt.
Deal team members to be congratulated
for the transaction include: corporate
banking - Bob Bucklin, Bruce Baccus,
Gordon Arnold, and Jim Kenwood; capi
tal markets/syndications - Sheldon Suss
man, Wink Mora and Nadar Pasdar; legal
- Brett Delfino and from credit, lan Reece.
Rabo India has entered into a
Strategie Cooperation Agree-
ment with Infrastructure Develop-
ment Finance Co (IDFC) to providc
India's F&A industry unique Solu
tions in developing its infrastruc
ture. While the agreement cornes as
evidence of both RI's and IDFC's
commitment to tapping the tremen-
dous growth potential in India's
food and agribusiness, it also
denionstrates the need for the imple-
mentation of international best
practices and an enabling frame-
work. Synthcsizing the complcmen-
tary strengths of the two institu
tions, the agreement will facilitate
synergistic initiatives in infrastruc
ture devclopment in F&A, which
will help the sector consolidate its
position in the international compet-
itive context. This partnership will
serve as a strong platform for future
efforts on key F&A infrastructure
projects where both Rabo and IDFC
will play a vital joint role. Key play-
ers in the developments in F&A In
frastructure in India include Rana
Kapoor and Preeti Sinha from Rabo
India and Jan Bausch and Arend
Heijbroek from RI, Utrecht. Next
month, What's NewS will feature
full coverage on more exciting de
velopments underway in Mumbai.