The Firm represented Royal Bank of Canada as sole lead arranger and administrative agent for $135 million of senior term and revolving credit facilities provided in connection with HM Capital Partners’ acquisition of an equity interest in Earthbound Farm. RBC also arranged $60 million of mezzanine financing that was provided by private institutional investors. Earthbound Farm has expanded from a 2.5-acre operation founded 25 years ago to become the largest producer of organic produce in North America, with a network of growers who control over 30,000 crop acres of premier organic farmland in Arizona and California. The transaction closed on July 20, 2009.
The Simpson Thacher team for the transaction included Alan Brenner, Colette Pollitt, Jean Chen and Brandon Greer (Credit), William Ferullo (Litigation), Seojung Park (Tax), Krista McManus, Elizabeth Ferrel and Frank Giovinazzo (Real Estate), Alvin Brown and Victoria Stewart (Executive Compensation and Employee Benefits), Timothy Mulvihill (Environmental) and Jennifer Rackoff and Genevieve Dorment (Intellectual Property). Paralegal John Oberbeck provided valuable assistance.