Mt deals Uncorking success Servicing agriculture Sweet financing Services POWERFARM.COM g lof America, Inc. What'sNewS Issue 7 November 2000 I I San Francisco's capital mar kets team has successfully placed a USD 35 million of 10 year senior unsecured notes in the Private Placement Market for first time issuer, Chalone Wine Group, Ltd. Witli USD 54 million in revenues and USD 73 million in equity, Chalone's credit quality is estimated by Fitch to be BB. A fixed financing rate 41bps below current borrowing rates for BB corporate public bonds was achieved through RI's place ment. Chalone issued through public spreads, despite serious market challenges in the offering period - California issued an 'agricultural' state of emergency in its wine country due to insect and disease in- festation; the market was showing signs of volatility; and Chalone had recently in- stalled its third CFO in three years. The notes were sold to two mid-western private placement investors on the offered terms and were closed at the end of August. Chalone is most noted for its pre mium and ultra premium wines, which include such brands as Chalone Vineyard, Edna Valley, Acacia, Canoe Ridge, and Carmenet, and is publicly traded in the equity market with its largest shareholder, Domain Baron de Rothschild holding ap- proximately 45% of the company. Chalone is one of several wine company lending relationships in Rabobank International's portfolio - others include Kendall Jackson, Mondavi, and Berringer. Top players in the transaction: John McHugh, account officer; Del Mastrangelo, associate; and support with syndications and debt products from Holly Hellman and Nader Pasdar in New York. RI's New York Syndications, in con- junction with the Chicago Office, has successfully completed the syndication of a new financing for Ag Services of Amer ica, Inc. Our teams secured a USD 45,000,000 transaction that refinanced Ag Services existing credit facilities, offering the cliënt creative solutions to key struc- tural and availability needs. The transac tion is secured by a second lien on MBIA securitized assets and a first lien on all other assets, and was placed notwithstanding sig nificant market volatility for below invest- rnent grade transactions. RI also provided a fixed rate interest rate swap on the term portion of the facilities. Successful teamwork and innovative thinking re- sulted in a significant increase in RI's on- going relationship income with the cliënt, RI's London office has successfully arranged and closed a high profile fi nancing for Tate and Lyle Inc. Tate and Lyle group is one of the top F&A compa- nies in the world by sales. This household name manufactures, refines, processes, dis- tributes and trades sugar, sweeteners, starches and by prod ucts. A USD 770 mil lion facility was used to refinance existing debt and to provide for working capital and other corporate purposes. RI successfully arranged and structured the loan with backing from a group of A-1+ banks, and intends to no- vate the structure into its new Erasmus London's Nick Allen (left), Sarah Mason and Simon Tyler Commercial Paper conduit during No vember. This has the doublé benefit of giv- ing Erasmus critical mass in the CP mar ket as a CP issuer almost from its inception and there- fore this deal is structured to use almost no solvency. This deal further strengthens RI's position as a primary and core relationship bank to Tate and I.yle. Key members of the deal team: Simon Tyler from rela tionship management, Sarah Mason from securitization and Nick Allen from UK SCO group. Valuable support was given by Arjan de Boer in Utrecht, Christine Hogg, legal, Stuart Clements and Andrew Macey from credit, and Gordon Harris and Paul Saunders from loans administration. along with a reduction in solvency used. A one-stop alternative for farmers to pur- chasc quality, name brand erop inputs while receiving financial advisory services, Ag Services serves a customer base of more than 1500 producers. Ag Services also runs as a wholly by Ag Services of America, Ine? owned subsidiary. Key members of the deal team include: corporate banking's Tom Levasseur, Bruce Baccus, and Jim Purky; capital markets' Holly Hellman; lcgal's Brett Delfino and Andrew Sherman; and field audit's Callan Oltmann and Jim Wiltse.

Rabobank Bronnenarchief

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