Rapid $10MM Financing for $33M Plant
Background
A prominent beef processing company was acquiring a new facility in Springfield, IL. The property, valued at $33 million, offered the potential to expand the company’s production from $20 million in annual revenues to $200 million—a tenfold increase strengthening both market position and profitability.
The Challenge
Time was running out. The sponsor had been relying on another funding source that fell through at the last minute, putting the entire acquisition in jeopardy. With only weeks left on the purchase contract—and no seller extensions available—the sponsor risked losing a $5 million escrow deposit if the deal failed to close.
PEAK’s Rapid Solution
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$10 Million Unsecured Debt: PEAK arranged this financing under tight deadlines, ensuring the acquisition could close on schedule.
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$5 Million in Working Capital: Additional funds were secured to sustain the borrower’s operations over the next 6 to 9 months, giving the company the runway needed to finalize permanent USDA financing.
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Bridge to USDA: PEAK identified a bridge lender willing to refinance the high-yield $10 million loan, paving the way for a more stable, long-term USDA-backed structure.
Outcome & Impact
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Escrow Preserved: The sponsor retained their $5 million escrow deposit, preventing the seller from pulling the plug on the deal.
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High-Value Asset Acquisition: Control of a $33 million facility positioned the beef processor to scale revenues from $20 million to $200 million annually.
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Job Creation in the Region: With expanded production capacity, the facility will add several new jobs in the Southwest Missouri area, boosting local employment and economic growth.
By securing fast and flexible financing under extraordinary pressure, PEAK prevented a major deal from falling through. The result not only safeguarded the sponsor’s investment but also facilitated regional job creation and paved the way for long-term growth through USDA-backed financing solutions.
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