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Case Studies

Stringer Farms


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  • 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)


  • 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

The Challenge

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.

The Chiron Solution

Chiron was engaged as its exclusive investment banker to raise the exit financing in November 2016.

The Result

Chiron approached hundreds of capital providers and received term sheets.

Is your com­pa­ny per­form­ing like it should?