Harvest Capital Credit Corporation (Harvest) closed a USD10.8 million junior secured debt financing for Yucatan Foods in support of a recapitalisation, as well as to finance the Company’s long-term strategic growth initiatives.
The debt financing was comprised of two tranches; an USD8.2 million junior secured subordinated debt investment and a USD2.6 million subordinated convertible note.
Headquartered in Los Angeles, CA, and founded in 1990, Yucatan is a pioneer in avocado processing and is consistently recognised within the food industry for outstanding taste, quality, and safety. Today, the Company offers an array of guacamole products in various flavours, which are found in leading supermarket chains and major food retailers across the US and Canada. In terms of market share, Yucatan is the #2 guacamole brand in the US, and is the leading brand in Canada.
Dan Walton, Yucatan’s Chief Financial Officer says: “Yucatan Foods is excited to have the financial strength and experience of Harvest Capital Credit as our new partners. Harvest brought a flexible and patient approach that allowed Yucatan to achieve our financial goals by providing capital for a large scale manufacturing capacity expansion, as well as a smaller internal recapitalisation. The transaction was closed according to terms presented by Harvest to Yucatan, and was handled in a professional manner.”
This financing is demonstrative of Harvest’s ability to provide flexible and customised financing solutions tailored to a client’s specific needs by being able to offer: senior secured debt, unitranche term financing, second lien debt, mezzanine capital, convertible notes, and equity co-investment capital. The transaction for Yucatan represents Harvest's 3rd investment in 2016.
