Case Study: Agriculture

Client & Objective:
A large scale broadacre cropping and cattle feedlot operation with multiple properties across different states of Australia. The family business was looking to fund upcoming succession strategies as well as the business growth ambitions of the next generation. Feedback from the incumbent major bank was that they would prefer to maintain the “status quo” at low LVRs and risk profiles.

Requirement:
Test the broader banking market to identify a funding partner that was prepared to back in clients immediate plans for growth of existing and proven operations. HT Capital worked with client’s wider advice network (including external accountants, financial planners and legal advisors) to develop a funding structure and detailed proposal to facilitate the above.

Solution:
Finance structure was negotiated with a new major bank and accommodated both term debt and working capital funding of circa $60m. Additional funding was sourced for immediate expansion of South Australian operations and landholdings. Given increased debt exposure, Interest Rate hedging strategy was developed and executed using SWAPS to cover an extended term of cover (outside of committed funding terms).