Deal Summary
INSIGNIA arranged $4,000,000 of recapitalization financing for a leased hemp farm in Alameda County, California, structured as a $3,000,000 senior term loan and a $1,000,000 revolving line of credit.
| Item | Detail |
|---|---|
| Transaction type | Recapitalization: consolidation of private notes and subordinate liens into a senior loan and revolving line |
| Property | Leased hemp farm |
| Location | Alameda County, California |
| Total financing | $4,000,000 |
| Loan structure | $3,000,000 senior term loan and $1,000,000 revolving line of credit |
| Term | 3 years |
| Payment structure | Interest only for the full term, paid quarterly |
| Loan to value | 20% |
The Transaction
The borrower owned a leased hemp farm in Alameda County with an estimated value of $20,670,000. INSIGNIA arranged a recapitalization that paid off multiple private notes and subordinate liens and consolidated them into a new senior term loan, alongside a revolving line of credit to provide liquidity for future investments. The senior loan and revolving line were provided by an agricultural farm credit lender. Both facilities carry a 3-year term with interest-only payments for the full term on a quarterly payment schedule, at a 20% loan to value.
Capital Structure
| Item | Detail |
|---|---|
| Senior term loan | $3,000,000, 3 years, interest only for the full term |
| Revolving line of credit | $1,000,000, 3 years, interest only for the full term |
| Total commitments | $4,000,000 |
| Payments | Quarterly, interest only for the full term |
| Loan to value | 20% |
| Estimated collateral value | $20,670,000 |
| Capital source | Agricultural farm credit lender |
INSIGNIA
INSIGNIA arranged the financing, including structuring the request, selecting the capital source and coordinating the process through closing. Hemp and other agricultural land owners with several private notes and subordinate liens often benefit from a single senior facility that also provides committed liquidity, and we place that type of financing using the capital source that fits the borrower and the asset.
This summary describes a closed transaction for informational purposes and is not an offer of financing or a statement of current pricing, which varies with market conditions, property type, sponsor credit and program requirements.
