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Returning Borrowers Tap into Carbon Market with Custom Loan Package

Read how these Texas borrowers built upon their relationship with AgAmerica to increase land profitability.

Operational goals can often change as needs shift and new opportunities arise. That’s why working with a lender capable of evolving alongside you is so valuable. When landowners partner with AgAmerica, they gain someone on their team who has a comprehensive understanding of rural land financing and is committed to customizing the perfect fit for you through a range of flexible loan solutions.  

The Challenge 

A reputable land investment company was interested in tapping into the carbon market by obtaining ownership rights to sequester carbon on their property. In addition, they wanted to restructure their existing debt with AgAmerica in a way that equipped them with more flexible working capital to support potential land acquisitions in the future. 

The Solution 

After fostering a close relationship with the borrowers over the last several years, AgAmerica had developed a holistic understanding of the type of financing needed to keep their operation thriving. To allow space for their financing to evolve with their needs, AgAmerica created a loan package that totaled nearly $45MM. This custom package included: 

  • A 20-year fixed rate term loan with 30-year amortization; 
  • A 10-year revolving line of credit with 25-year amortization; and  
  • An additional line of credit with interest-only payments for five years.  

All facilities were “non-recourse” to the borrowers, meaning all loans were secured by land collateral without personal liability. Their ability to leverage existing properties to further strengthen their portfolio equipped them with flexible capital to seize new opportunities and enhance their conservation efforts.  

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AgAmerica - An Equal Opportunity Lender

 

AgAmerica Lending® LLC is a licensed mortgage lender. NMLS ID# 372267

Copyright AgAmerica® LLC 2022. All Rights Reserved.

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  • This field is for validation purposes and should be left unchanged.

AgAmerica - An Equal Opportunity Lender

AgAmerica Lending® LLC is a licensed mortgage lender. NMLS ID# 372267

Copyright AgAmerica® LLC 2022. All Rights Reserved.