SIT­U­A­TION

• Stringer (the ​“Com­pa­ny”) owns and oper­ates approx­i­mate­ly 6,600 acres of prime irri­gat­ed farm­land as well as a cat­tle feed lot in Moore Coun­ty, locat­ed in the Texas Panhandle
• The com­mod­i­ty mar­ket for cat­tle col­lapsed in 2015 and due to ill-timed hedge posi­tion exits large­ly influ­enced by lenders, Stringer lost sig­nif­i­cant val­ue in his cat­tle with­in a mat­ter of weeks. As a result, the bal­ance of $7 MM with Wells Far­go became impaired and the com­pa­ny defaulted
• Stringer filed for Chap­ter 11 in Decem­ber of 2016
• Chi­ron was engaged as its exclu­sive invest­ment banker to raise the exit financ­ing in Novem­ber 2016
• The Exit Facil­i­ty will be com­prised of the New Term Loan and the New Revolver. Stringer is seek­ing a cred­it facil­i­ty with a min­i­mum capac­i­ty of $3.8 MM and poten­tial bor­row­ings of up to $12 MM ($3.8 MM – Refi­nance prim­ing DIP loan, $1 MM – Refi­nance Wells Fargo’s equip­ment loan, $2.2 MM – Financ­ing for plant­i­ng of 2018 crop, $5 MM – Financ­ing for feed­lot operation)

OUT­COME

• Chi­ron approached hun­dreds of cap­i­tal providers and received term sheets
  
• Chi­ron arranged a Debtor in Pos­ses­sion (DIP) loan
• Chi­ron suc­cess­ful­ly arranged exit debt financ­ing to recap­i­tal­ize the com­pa­ny and emerge from Chap­ter 11