Old Hill Partners provided an $8 million senior secured pre-export credit facility to a company in Latin America with which it had a previous lending relationship. The company exports specialty agricultural products to global distributors. Old Hill’s financing allowed the exporter to lever its inventories during the harvesting and processing cycle, resulting in working capital for its business.
This is the second such facility Old Hill has provided to this exporter. Security for the facility consists of physical commodities pledged under warehouse receipts, as well assignment of export contracts and receivables.
“We worked with this exporter to craft a credit facility that offered attractive advance rates with appropriate risk controls and return,” Sam Adams, portfolio manager at Old Hill Partners, said. “We were able to move quickly to provide a creative but prudent solution to their financing needs. Looking forward, we believe that the easing of the pandemic will restore global trade flows and intensify the need for export finance. Old Hill aims to support growing companies in Latin America and elsewhere as they finance the movement of their products throughout the world.”
Old Hill provides asset-based lending solutions for borrowers seeking $5 million to $50 million in financing. The firm structures senior secured debt in the form of term, draw down and revolving-to-term facilities of up to four years and loan-to-value ratios in the range of 35% to 85%. Collateral types include pools of loans or leases (specialty finance), receivables, inventory, machinery and equipment.
