A Dairy
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A large new Canadian-owned Dairy wanted to control its source of Alfalfa.
A Dairy located in Washington had connected with an experienced grower in Oregon who could develop and manage fields of Alfalfa.
Problem: The grower needed new equipment to do the job, but lacked the credit history to borrow $1.5 Million. Additionally, the Dairy was new and lacked production history.
Solution: WF E3 Found an underwriter to finance the equipment through the Dairy using the guaranty of the Canadian parent at very attractive rates (near 4%). Then WF E3 created a "lease, sub-lease" structure between the Dairy and the Grower. The Dairy earned an additional two percent, and the grower could lease the equipment with an option to buy. It is estimated that if the grower would have borrowed directly, the risk rating would have increased the overall cost by nearly $900,000.00, making the project economically unfeasible for both parties. It was truly a "win-win."
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Small Super Market Chain
The company wanted to add two new stores located in the Portland, OR marketplace. They needed $2.4 Million to finance the fixtures and equipment.
Problem: Existing Stores did not show much history of positive cash flow.
At the initial meeting with the CEO, Mr. Wright conducted a brief review of the financial results. He then suggested that the only way the deal could be done would be through the use of a credit enhancement: A 15% refundable Security Deposit.
The CEO told Mr. Wright that he had already spoken with a broker earlier and was told he could get it done. Mr. Wright left the interview and wished the president good luck. The CEO after further reflection,appreciated the straight and honest assessment and called back the next day and hired WF E3.
Solution: Mr. Wright put together a solid forecast and business plan using the most sophisticated analytics and publishing software. He was able to get the financing at reasonable rates with the 15% refundable Security Deposit. The company opened the two new supermarket locations on time.
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Large Bus Company
Problem: The owner had some losses and negative working capital. The bank had the company in special assets.
Solution: Mr. Wright dug deep into the history of the company: Over 10 years of financial data were obtained. He was able to carve-out the reasons for the losses; and show the new underwriter that such causes had been mitigated. He was able to refinance all of the existing debt and creat a positive debt-coverage ratio with room to spare. Within just a few years, the owner was able to sell the company with enhanced value and retire comfortably.