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CO VER S T OR Y Wines & Vines has identified these financial institutions as leaders serving the West Coast wine industry. Compa- nies were chosen based on demonstrated involvement in vineyard and winery finance, number of clients, size of portfolio, size of wine team and other factors. Some businesses chose not to disclose all the requested information. * Data sourced from listing in the 2011 Wine Industry Symposium Financial Resource Directory COMPANY AMERICAN AG CREDIT FARM CREDIT WEST FRESNO MADERA FARM CREDIT 448 771 COMMUNITY BANKS BANK OF MARIN 20 EXCHANGE BANK MECHANICS BANK JOHN HANCOCK FINANCIAL SERVICES METLIFE AGRICULTURAL INVESTMENTS PRUDENTIAL FINANCIAL BACCHUS CAPITAL MANAGEMENT 35 SECOND LIEN LENDER 5 $600 million 45 50 NO. OF CLIENTS PORTFOLIO SIZE THE FARM CREDIT/AG CREDIT SYSTEM More than $1.1 billion $900 million More than $900 million $1 million / $10 million $150 million $100,000 / $30 million $10,000 / $30 million INSURANCE COMPANIES $200 million $10 million / $150 million $2 million / $250 million $2 million / $200 million $1.5 million / $7.5 million industry, " says co-founder Sam Bron- fman, "but not in wine." As with special- ity banks, part of the value Bacchus adds is domain expertise. "What helps us stand out is our experi- ence in the wine industry," he says, "which portfolio companies can rely on if they choose." Bronfman brings 30 years of wine industry experience, including having run the U.S. wine business for the Seagram Co. and overseeing its brands including Ster- ling Vineyards and Mumm Napa Valley. Managing director Quinton Jay brings another 15 years of wine experience includ- ing time as general manager at Bonny Doon, Etude and Artesa. The "range of our loans is $1.5 million-$7.5 million on Traditional long-term debt up to 20 years, mezzanine financing and equity investment Long-term fixed 5- to 20-year loans and adjustable mortgages Originate long-term, fixed loans up to 20 years First- and second-lien loans and direct equity investments a second-lien loan position," Jay says. "Security still exists, but behind the primary lender." Loans can be used for a broader ar- ray of uses than traditional loans including: refinancing, buyouts, growth, control issues or just added liquidity. These loans, like second mortgages, carry more significant costs due to the risk they incur, and tend to participate in the upside they help create. The lender that's right While there are many potential lenders a borrower may court for wine loans, find- ing the one that is right for your business is more important than just finding the lowest price. "If the winery has a solid capital base, it can afford to go to find the Dwayne Bertrand at (916) 922- 4211 or dbertrand@jhancock.com Jonathan Holbrook at (559) 470- 6444 or jwholbrook@metlife.com; John Braas at (916) 802-1995 or jbraas@metlife.com Bill Beyer at (916) 789-4070 or william.beyer@prudential.com Quinton Jay at (415)828-8898 or qjay@bacchuswinefund.com cheapest money, even from someone that doesn't know wine," Motto says. For a smaller winery, the expertise and knowledge should trump the lowest rates. "The most important thing for a small winery is to find a bank that's heavily in- volved in the industry. Most (owners) put everything they have into the business, and then they borrow. They are operating at the pleasure of the bank. They need people that understand their business." Ben Narasin is a venture capitalist and freelance wine journalist. His work has ap- peared in the San Francisco Chronicle, Wine Enthusiast and other media outlets. Staff writer Andrew Adams contributed to this report. WINES & VINES SEPTEMBER 2012 35 Operating and capital loans, mortgage loans and leases Operating and capital loans, mortgage loans and leases Operating and mortgage loans, develop- ment loans and financing Lines of credit, term loans, equipment financing, acquisitions, cash manage- ment, construction and real estate loans Working capital, construction, acquisi- tions, development and equipment finance Real estate acquisition and construc- tion, vineyard development and replant- ing, inventory lines of credit, crop financing, equipment and barrel leasing Bill Rodda at (707) 545-7100 or brodda@agloan.com Lee Ann Pearce at (805) 434-3665 John Brandon at (559) 276-4868 or john.brandon@fmfarmcredit.com Matt Bartlett at (707) 508-3376 Steve Herron at (707) 524-3102 or herons@exchangebank.com Jason Hinde at (707) 967-4791 or jason_hinde@mechanicsbank.com MIN / MAX PRODUCTS OFFERED CONTACT WINE INDUS TR Y FINANCE TOP 20