$64M | Debt and capital raise for agriculture operation

KitsWest Capital advised the shareholders of an Alberta-based farming and agriculture operation on a $64M senior debt and operating facility raise. The financing supported working capital, equipment financing, and ongoing growth across integrated crop and livestock operations. The borrower required a lender match that understood the seasonal cash flow cycles of agriculture, real-property and equipment-secured collateral structures, and the commodity-price sensitivities embedded in farm operating businesses.

The mandate

The engagement covered situation review and capital structure analysis, preparation of a comprehensive lender package modelling crop rotations and livestock cycles, identification and engagement of qualified Canadian agricultural lenders including Schedule I banks, Farm Credit Canada, and specialty agri-lenders, term sheet negotiation across multiple lenders, and execution through closing of both the senior debt facility and the operating facility. Pricing, advance rates against farm assets and inventory, and covenant package were optimized through competitive tension.

Why this transaction represents our practice

This $64M financing is representative of the debt and capital advisory work KitsWest delivers for owner-managed agriculture and agribusiness operations across Alberta, Saskatchewan, British Columbia, and Western Canada. Agriculture borrowers benefit from running a structured lender process because the right lender match is sector-specific, and pricing, advance rates, and covenant flexibility all move materially when Schedule I banks, Farm Credit Canada, and specialty agri-lenders compete on the same opportunity.