Joint Financing Arrangement Provides Acquisition Financing for Purchase of Southern California Facility
SAN DIEGO, July 20, 2016 /PRNewswire/ -- Bank of Southern California (OTC Pink: BCAL) announced that it has provided $5 million in financing as senior lender in part of a larger financing arrangement for OWB Real Estate Holdings, LLC. The financing was a combination of bank borrowing, and loans secured through the Federally backed New Market Tax Credit program. The financing provided funds used for the acquisition of land, improvements, and equipment of a shuttered beef slaughter and processing plant in Brawley, Calif., formerly operated by National Beef.
The acquired property includes a 337,000 square foot slaughter and processing facility located on approximately 87 acres. National Beef California, LP closed the plant in April 2014. In addition to the significant loss of local jobs, local cattle ranchers were forced to use processing plants located in central California, Arizona, and Texas which negatively impacted processing costs and yields.
OWB Packers, LLC, a related entity to OWB Real Estate Holdings, LLC will operate the new facility. It plans to reopen for production in Fall 2016. The reopening of the Brawley facility will reestablish a much-needed cost and competitive advantage for local cattle farmers and will effectively help redirect millions of dollars of revenue back into the Imperial Valley. It is anticipated that the reopening of the plant will result in significant job creation over the next several years.
"In preparing for this acquisition, we chose to partner with Bank of Southern California as the senior lender because of their local presence, their ability to quickly understand an extremely complicated transaction, and smoothly interact with our other lenders," commented Eric Brandt, President of One World Beef.
About OWB Packers
OWB Packers is a custom toll beef processing provider and is part of the One World Beef family of companies. Based in Buena Park, Calif., One World Beef is a meat sales and marketing agent, distributing beef products to some of the finest restaurants, chefs and purveyors across the globe. One World Beef is an alliance of quality brands including Brandt Beef and Kagoshima Beef, and is the sole connection for international restaurants, chefs and distributors looking to provide exquisite American beef from Brandt Beef to discerning customers. Likewise, the company also works with restaurateurs in the United States providing genuine wagyu beef direct from Japan. More information: www.oneworldbeef.com.
About Bank of Southern California
A growing community bank, established in 2001, Bank of Southern California, N.A., with headquarters in San Diego, Calif., is locally owned and managed and offers a wide range of financial products to individuals, professionals and small-to-mid sized businesses. The bank's solution-driven, relationship-based approach to banking provides accessibility to decision makers and enhances value through strong partnerships with their clients. The bank currently operates seven offices in San Diego and the Coachella Valley in Riverside County.
For more information, visit http://www.banksocal.com/ or call (858) 847-4780.
SOURCE Bank of Southern California, N.A.