Calaveras Vineyards

23 Pages Posted: 21 Oct 2008

See all articles by Robert F. Bruner

Robert F. Bruner

University of Virginia - Darden School of Business

Multiple version iconThere are 2 versions of this paper

Abstract

In 1994, a senior lender at a West Coast financial institution must evaluate an opportunity to provide credit for a management buyout of a vineyard. The tasks for the student are to value the vineyard, assess its ability to service the proposed debt, critically evaluate the buyout terms, and recommend action for the lender.

Excerpt

UVA-F-1094

Rev. Apr. 26, 2016

Calaveras Vineyards

In March 1994, Anne Clemens, a senior vice president at Goldengate Capital, received a loan proposal from Tom Howell, a managing director with NationsBank's investment-banking group. The brochure described the prospective management acquisition of Calaveras Vineyards and solicited Goldengate's participation in the $ 4.5million senior financing facility. The facility would consist of a $ 2 million term loan and a revolving credit of up to $ 2.5million. Clemens needed to decide quickly whether the proposed terms were attractive, where to position Goldengate in this credit, and whether to offer a counterproposal on terms.

Goldengate Capital was a large West Coast financial institution with main activities in commercial lending, asset-based financing, leasing, mezzanine lending, and equity investing. Clemens had worked with Howell on a previous deal, and participated in two other business deals structured by him. These proved to be very profitable deals for Goldengate, so Clemens planned to give this new proposal careful study. NationsBank N.A. was the third largest financial institution in the United States.

Calaveras Vineyards

. . .

Keywords: banking, credit analysis, forecasting, valuation, diversity

Suggested Citation

Bruner, Robert F., Calaveras Vineyards. Darden Case No. UVA-F-1094, Available at SSRN: https://ssrn.com/abstract=909368 or http://dx.doi.org/10.2139/ssrn.909368

Robert F. Bruner (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://faculty.darden.edu/brunerb/

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
699
Abstract Views
3,974
Rank
51,777
PlumX Metrics