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Ag Growth International

Ag Growth International. One of largest manufacturers globally of grain storage, handling and conditioning systems Publically traded on TSX Market cap of $600M Proven financial performer Raised $100M+ of capital in 60 minutes 2009. AGI Primary Industry Sectors. North American experience.

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Ag Growth International

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  1. Ag Growth International • One of largest manufacturers globally of grain storage, handling and conditioning systems • Publically traded on TSX • Market cap of $600M • Proven financial performer • Raised $100M+ of capital in 60 minutes 2009

  2. AGI Primary Industry Sectors

  3. North American experience

  4. AGI and project finance • Primary motivation is sale of its products • Leverage our experience in public market to assist qualified borrowers • Ability to match correct financial vehicle with customer • Will share risk under correct circumstances • Assist project managers with credit proposals to various credit providers, refer qualified projects to equity partners

  5. Financing options - summary Short term manufacturer (1 year or less) • LOC • EDC / EXIM supplier guarantee Mid term debt finance (5 to 7 years) • EDC • EXIM more flexible • U.S. Bank with EXIM guarantees • EBRD Equity (varies) • Major Investment Bank • Boutique IB Strategic operating partners

  6. SHORT TERM

  7. Short term: Letter of Credit • 25% cash down • 75% under LOC with bill of lading • Must be confirmed by AGI bank • Cost = confirmation fee • Borrowers bank standby LOC fee

  8. Short term: EDC / EXIM • Government guarantee to manufacturer or to bank • Generally up to 180 days, less than 365 • Can reduce or eliminate deposit • Insurance fee of 1.5 to 2% • Fast turnaround on applications • Generally less than $10M

  9. Mid TErm

  10. Mid – Term EDC / EXIM • 5 to 7 years • EDC limited availability (case by case) • Generally 85% of North American content in contract • Libor / client and country risk based rates • Letter of Interest - generally no cost • AP (Final commitment) application fee 0.1% to 1% • No minimum or maximum dollar amount

  11. Mid Term credit criteria - EXIM • Acceptable audited financial statements • Same general business for 3 years • If startup, qualified guarantor must be provided as well as business plan, feasibility study, technical information, and financial projections with supporting assumptions and sensitivity analysis. • If repayment is dependent on, or if intercompany sales exceed 25% of annual, consolidated statements and cross guarantees must be provided • Personal guarantees required if single shareholder holds more than 25% of shares and sales are less than $50M • Loan cannot exceed 40% of tangible net worth

  12. Mid Term credit - EBRD • Minimum credit of 5M Euros • Will finance all project costs (equipment and civil works) • IFRS statements mandatory • Longer application process • Direct loans, no local bank involvement

  13. Equity Partners

  14. Major Investment Bank: Strengths • Experienced - Fiscal 2007 : 240 transactions $129B • Principal investor perspective - One of the largest private investors in the world • Capital sourcing capabilities - Standard and Poors A - /Stable Weakness • Limited port infrastructure experience - Exception: Multi-purpose cargo port in China

  15. Boutique Investment Bank: Strengths • Hungrier for deal • Focused on mid market clients ($30 to $300M transaction size) that require highly customized solutions. • Specialize in completing assignments in “under-banked” market segments, sectors and geographies that are not heavily covered by the larger investment banks • Agribusiness and port experience Weaknesses • No capital of their own

  16. Strategic partners

  17. Strategic Partners Strengths • Upstream activities • Downstream markets • Management experience • Credibility in North American and European capital markets Weaknesses • Give up high degree of control

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