Webster Bank closed on a $7.2 million portfolio financing deal for Isle Brewers Guild, a craft beer cooperative in Pawtucket, RI, co-founded by Devin Kelly and Jeremy Duffy. The guild is designed to deliver additional capacity, efficiency and control to its brewing partners.
Webster Bank provided $4 million of financing to the Rhode Island Industrial Facilities in conjunction with a guarantee from the Rhode Island Industrial Recreational Building Authority by purchasing two bonds, one 25-year series and real estate for about $1.4 million and a 15-year series of approximately $2.6 million for machinery and equipment to establish a brewing operation.
Webster also partnered with the U. S. Small Business Administration, in conjunction with its 504 Program, to provide an additional $3.1 million of financing consisting of $2.8 million of bridging bridge financing which will be subsequently taken out by a 20-year fixed rate U. S. Government debenture and a $0.35 million working capital line of credit enhanced with an SBA Express Guarantee.
“Isle Brewers Guild capital deal was very complex in nature as it involved the State of Rhode Island and the Small Business Administration. Webster led the charge to assist us in developing a pathway to get the brewery up and running. We look forward to continuing to work with Webster to build a successful enterprise,” said Jeremy Duffy, managing fartner, Isle Brewers Guild.
“Webster provided the company with a consultative approach, coupled with a creative deal structure, that allowed them to move forward with their vision,” said Doug Scala, regional president for Rhode Island at Webster. “What matters most however, is their commitment to core values and focus on community initiatives.”
Anthony Capuano, Jr., senior vice president, Commercial Banking at Webster, led the transaction.
“We are looking forward to continuing to partner with home-grown, emerging, entrepreneurial business, like the Guild, in support of the expansion of local initiatives, by helping to empower them with products and services that will help their businesses grow and prosper,” said Capuano. “Our commitment to creating innovative and proactive financial solutions, partnering with State and Federal Agencies when necessary, has ensured we are responsive to our clients’ needs, which has been clearly showcased through the bank’s partnership with the guild. At the end of the day, we have been successful in assisting them in completing the renovation and build out of their manufacturing operation and will continue to support them with their future goals.”