16.1 The ask
TerraVanta seeks a US$500 million capital raise from strategic agribusiness investors, infrastructure funds, development-finance institutions, private-equity partners and commodity-trading partners, structured as US$200 million of equity and US$300 million of senior and mezzanine debt, alongside a separately arranged US$312m secured finance-book facility and a modest revolving facility.
16.2 Use of funds
|
Use |
US$m |
Share |
|---|---|---|
|
Grain infrastructure |
180 |
36% |
|
Equipment division |
75 |
15% |
|
Feed mills |
65 |
13% |
|
Retail infrastructure |
40 |
8% |
|
Logistics fleet |
35 |
7% |
|
Technology systems |
20 |
4% |
|
Working capital & finance first-loss |
85 |
17% |
|
Total |
500 |
100% |
16.3 The investor proposition
- Exposure to scarce, cash-generative agricultural infrastructure in a concentrated market.
- A diversified, seven-division earnings base with structural cross-selling.
- A finance division monetising a US$74.5bn regional funding gap on a secured basis.
- Strong de-leveraging and a clear five-year path to US$190m EBITDA.
- Multiple, credible exit routes and development-finance alignment that lowers the cost of capital.
16.4 Indicative instrument terms
The indicative terms below frame how the US$500m core raise could be structured across the capital stack, alongside the separately arranged, self-liquidating finance-book facility. Final terms are subject to negotiation, diligence and the covenant package discussed in Section 14.
|
Instrument |
Amount |
Indicative pricing |
Key terms |
|
|---|---|---|---|---|
|
Ordinary equity |
US$200m |
Return via exit |
55/30/15 draw over Yrs 1–3 |
|
|
Senior debt |
US$220m |
~11.0% |
10-yr, 2-yr grace, then amortising |
|
|
Mezzanine |
US$80m |
~15.0% |
Interest-only over horizon |
|
|
Revolving facility |
~US$16m peak |
~12.0% |
Liquidity to a US$10m cash floor |
|
|
Finance-book facility |
~US$312m peak |
~12.0% |
80% advance, receivables-secured |
|
|
NOTE — Terms are indicative and negotiable Pricing shown is the modelling assumption, not a committed rate. Development-finance participation or blended-capital tranches could lower the blended cost below these levels; conversely, a tighter credit market would raise it. The covenant package in Section 14 should be read as part of these terms. |
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