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 Powerfarm.com 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.