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Alternative Lending

 

To discuss Alternative Lending please call (855) 381-3451 or email info@conterraag.com

Special Financing Products Conterra Fund: Dedicated to financing agricultural real estate for borrowers that do not meet traditional lending standards or that need to restructure a financial situation. Loans range from $500,000 - $10,000,000 Loans up to 5 year fixed rates with traditional amortizations, level principal payments or interest only Loans must be well-collateralized by real estate Borrowers must be able to cash flow all debt payments based on a total debt coverage standard of 1:1:1 Loan to appraised value of the real estate collateral ≤ 65% Bridge Financing: Focused on providing interim debt capital assist borrowers in qualifying for traditional financing. Loans range from $500,000 - $10,000,000 Loans of 2 year terms, with amortization or interest only Loan to appraised value of the real estate collateral ≤ 60% Borrowers must cash flow on an interest only basis We understand agriculture is cyclical and borrowers are affected by markets, weather and other factors beyond their control. Our underwriting guidelines and policies allow us to place more emphasis on management, positive changes to the farm operation and proforma financial projections. Our objective is to provide financial alternatives for debt restructures either directly to borrowers or through agricultural banks that enable farmers and ranchers to work through periods of stress. The examples below are actual transactions that show key financial measure pre and post restructure. Conterra Fund – Loan Examples(at submission)

Washington State Broiler Operation

 

  • Current Ratio:                 2.54%
  • Debt to Asset Ratio:          36%
  • 3-yr Avg. TDC:              0.95%
  • FICO:                             721

 

 

  • Situation: Mortgage reached maturity at year-end 2015 and existing lender provided extension in order to allow borrower to refinance.  Applicant had difficulty finding traditional financing due to historically tight repayment capacity.

Minnesota Row Crop Operation

 

  • Current Ratio:                      0.54%
  • Debt to Asset Ratio:             52.4%
  • 3-yr Avg. TDC:                    0.74%
  • FICO:                                   656

 

  • Situation: Applicant had significant carry-over operating debt from 2014 and 2015.  Carry-over debt was refinanced by the existing lender onto two 5-yr term 5-yr amortization notes.  Cash flows could not service the additional principal in 2016.  Strong equity in farm real estate.

Washington State Broiler Operation

 

  • Loan Amount:           $800,000
  • Loan to Value:                 53%
  • Current Ratio:               2.95%
  • Debt to Asset Ratio:          37%
  • TDC Ratio:                   1.15%
  • FICO:                             721
  • Terms: 7.25%, 3 year balloon, 25 year AM

 

 

Minnesota Row Crop Operation

 

  • Loan Amount:             $2,556,000
  • Loan to Value:                       65%
  • Current Ratio:                    1.17%
  • Debt to Asset Ratio:          54.12%
  • TDC Ratio:                        1.11%
  • FICO:                                  656
  • Terms: 7.75%, 5 year balloon, 20 year AM

 

 

Conterra Fund – Loan Examples(after restructure)

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