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AgLease, LLC

Meeting Sweet Potato Demand

Raised $3,000,000

16% Senior Secured Loan

due April 17, 2015

  • AgLease, LLC (“AgLease"), a single purpose entity, was formed to acquire approximately 5,000 new and 50,000 used 2,000lb.-capacity wooden bins for lease to Wayne Bailey, Inc. The bins are commonly used for storing and transporting sweet potatoes and other agricultural products.

  • Bailey, a NC-based-based corporation founded in 1935, was one of the leading sweet potato growers and packers in the United States (approximately 6% of US production). In addition to its 5,000+ acres under cultivation, Bailey was a “packer” that also bought from other farmers and then stored (in its extensive climate controlled warehouses), packaged and sold potatoes through a vertically integrated direct to customer business.

  • Since 2005, the sweet potato market had grown, with 51% more pounds produced and 68% more revenue realized. This growth and price appreciation in sweet potatoes came from: (1) better recognized nutritional value by consumers and their consequently shifting a greater portion of their overall potato consumption to sweet potatoes, and (2) new uses of sweet potatoes in french fries and chips, which occurred en masse five years ago and were growing at a 30% annual rate.

A single purpose entity, AgLease, LLC (“AgLease”) issued $3,000,000 to acquire agricultural storage bins for immediate lease to Wayne Bailey, Inc., to facilitate a repayment of Bailey's term loan, and to provide working capital.

Securities sold by affiliate, Carolina Financial Securities, LLC