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When your needs are larger or more complicated than the average loan, we have a special department designed just for that need: our Capital Markets Group. Let’s take a look at who they are and how they can help.
The Capital Markets Group (CMG) was formed in 1989 as a professional lending team specifically designed to serve the often complex needs of the middle/large and Fortune 1000 agribusiness companies. They specialize in providing a full range of lending, distribution and consulting services tailored to the needs of borrowers and financial institutions. CMG’s mission is to provide those customers with the highest quality and competitively priced debt financing available while distributing lender risk through the use of multiple lenders.
CMG deals with loans in the wine, food processing and agribusiness industries, forest products and electric cogeneration industries, and participates in large agribusiness financing transactions with commercial banks and other Farm Credit Associations. We’re able to offer a high degree of service to our clients including timely loan servicing, payment processing and loan accounting. In the changing world of lending, we are continually improving credit delivery, portfolio management and income generation.
Credit products are provided on both a secured and unsecured basis and are structured to meet the unique needs of each customer, and include:
- Secured mortgage loans
- Private placements of debt
- Leasing services
- Industrial Revenue Bond issuance
- Interest rate hedging products
- Agent and facilitator of syndicated and participated credit facilities
- Personal property secured transactions
- Unsecured revolving lines of credit and term facilities
- Loan accounting and payment processing
- Participation relationships with the Farm Credit System, Co Bank, commercial banks and insurance companies
We currently provide loan servicing for secured and unsecured credit facilities on behalf of participating lenders, including:
- Collateral monitoring of property, plant, equipment, inventories and accounts receivable.
- Analysis of collateral reconveyances, substitutions and subordinations
- Loan accounting and payment processing
- Financial covenant compliance monitoring
- Asset inspection and valuation
- Analysis of economic impacts and regulatory changes
CMG offers a range of consulting services to borrowers, participating financial institutions, and third party clients:
- Valuation of property, plant and equipment
- Evaluation of management and operating practices
- Cash flow modeling of production, manufacturing, and vertically-integrated operations
- Inventory verification and analysis
- Market and industry economic analysis
- Policy and regulatory environment analysis
- Syndicate/participate in credit facilities from $15 million up in the agribusiness, forest products and electric cogeneration industries. Act as lead arranger on secured and unsecured facilities to companies with sales ranging from $50 - $800 million or more.
- Able to fund over a full range of maturities. Unsecured and personal property secured facilities can be structured with tenors upwards of ten years, and real estate secured facilities can be structured with tenors upwards of twenty years.
- CMG can structure facilities with delayed takedown options or multi-year revolving commitment components and structure, finance, participate and service facilities incorporating both short and long term amortizations and project finance credits.
- We can provide maximum pricing flexibility by structuring credit facilities with one or a combination of variable and fixed interest rate tranches. Staggered fixed rate maturities with indexed repricing options are often included in multi-year credit facilities. Multiple tranche pricing and performance pricing opportunities are often included in both short and long term credit facilities. Partial open prepayment options can be incorporated in multi- year facilities. Interest rate hedging options are available, including forward pricing, rate swaps and caps.
- CMG performs appraisals and evaluations of agribusiness and forest products property, facilities and equipment. To assist with the collection and verification of field data we use the consulting services of a number of professional firms. Working with these consultants allows us to apply their particular skills, knowledge and judgment while maintaining our independence in forming a final value conclusion.
- Services performed on behalf of participating lenders include financial covenant compliance monitoring, asset inspection/valuation, analysis of economic impacts and regulatory changes.
- CMG has structured, financed, participated and serviced facilities incorporating both short and long term amortizations, multiple year revolving lines of credit and project finance credits.
- CMG has performed appraisals and evaluations of agricultural properties, timberlands and facilities with market values exceeding $500 million. Appraisals meet the Uniform Standards of Professional Appraisal Practice (USPAP) as well as the Federal Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).
Sean P. O’Day, Senior Vice President
Gary Van Schuyver, Vice President
Brad Leafgren, Vice President
Jan Thede, Vice President
John Gunderson, Vice President
Michael Balok, Vice President
Edwin Adams, Vice President
Russell E. Forsburg, Senior Appraiser/Forester
Martin P. Patten, Senior Appraiser/Forester