Solteam

Presentation of the company

Created in 2005, Solteam is active in the the trading of non-GMO soya meal sector. The company, managed by Laurent Houis and Guillaume Bettinger, has 8 employees and is based in Nantes. Both executives have 25 years of experiences and are supported by their four cooperative shareholders, Cavac, Terrena, Fermiers de Loué and Agrial.

The company’s main activity is: purchase, storage and sale of vegetable proteins, mainly non-GMO soya meal for animal feeding.

The company works with a diversified portfolio of 450 clients mainly private comapnies and their shareholders.

The company holds 70% market share on non-GMO soya meal in France to date. The turnover is 100% in France and very largely in the western France.

Project Description

The company wishes to borrow 3 000 000 € over 84 months with 3 months of deferred repayment to finance the set up a storage facility in the seaport of La Rochelle . This project will be realised next month.

This project is a Flexible Bridge Loan, an amortizable loan with a standard commitment for the first 9 months and the possibility of early repayment at no cost for the remainder of the loan term, even in the event of refinancing by other financial institutions.

This project is a medium-term loan with a capital amortisation deferment and as such presents a different method of capital repayment than standard projects. The first 3 months, the lenders will only receive interest; the following 81 months, the lenders will receive interest and principal amortization. This principal repayment profile matches the borrower’s financing needs while allowing lenders to earn a higher amount of interest.

The amount offered on the platform is limited to 1 000 000€, which is in line with the regulatory limits.

Like all projects presented to individual lenders on Lendix, it is co-financed with institutional investors, sophisticated investors and the management of Lendix, subscribers to the Lendix Fund.

Analyst’s Opinion

With a turnover of 207 146 000 € in 2018 and an experienced team, the company has a good track record combined with an acceptable operating margin.

In 2017 and 2018 the decrease of Turnover is driven by a decrease in price and volume on the soya meal since may 2016. The forecast is based on the historical performance of the company with an increase of the profitability driven by the storage facility investment which allows better control of storage capacities and related costs.

The borrower has a solid repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,57 and an excellent financial structure, with a forecast net debt / ebitda ratio of 1,49 and a net debt / shareholder equity of 21%.

taking into consideration the freeze of the partners’ current accounts during the Lendix loan term.

The analysis of the project leads to a credit rating of A and a 5% annual interest rate.

Strong points:

• Good historical performance based on diversified client base.
• Solid repayment ability with a forecasted FCCR of 1,57 reinforced by the support of banking pool and shareholders.
• Leader of the French non-GMO soya meal import market (70% market shares)

Points of caution:

• Volatility of soybean prices

*The multiple of FCCR at 1,57 means that the company has a safety margin of 57% relative to its ability to repay its credit maturities.

The expert opinion is given as an indication on the basis of the elements provided by the project holder and information from our databases (Scores & Decisions, Corporate Banking File). This opinion is only an element of reflection in the decision making of a lender to participate in the financing of a project.