If you’re a dynamic food and agriculture company, subordinated debt (subdebt) financing is a good alternative to support growth, acquisitions, management buyouts, cross-border ventures and more.
Mergers & Acquisitions
Growth & Expansion Programs
Financing Capital Requirements When Little Tangible Security is Available
Subdebt is a highly customizable financing solution based on the strength of your business and can be structured to fit different types of security, repayment terms, and debt servicing capacity. Security is generally subordinated to that of a senior lender. Terms may include amortization of up to 8 years and interest payments that match the timing of your company’s cash flow.
While subdebt is more expensive than conventional bank debt, it is a very cost-effective alternative to diluting a company’s existing shareholders. It is sort of like renting some equity for your business.
Today, the Avrio Subdebt team manages $200,000,000 in Subordinated debt commitments and have been leaders in Canada’s food and agriculture industry since 2002, working with nearly 60 companies to address industry challenges in novel ways. Avrio’s portfolio companies operate successfully in areas like crop inputs, food production, nutrition, commercial farming, and value-added processing.
Over the last several years, Avrio Subdebt has been the preferred financing solution for many dynamic food and agriculture companies.