Brazzale raises $11.4M borrowing against ageing cheese

What's the deal? BrazzaleDealroom has a profile for this one. Try Dealroom → SpA, an Italian dairy company founded in 1784, has raised $11.4 million in debt backed by cheese ageing in its warehouse. Italy's state lender Cassa Depositi e PrestitiDealroom has a profile for this one. Try Dealroom → and Cherry BankDealroom has a profile for this one. Try Dealroom → SpA provided the financing.

Why now? The transaction was made possible by changes to Italy's securitisation law, which now lets companies raise finance against non-registered goods including food products, raw materials, and manufactured items. Previously, such deals were largely limited to real estate and financial receivables.

What's the endgame? A special purpose vehicle, Magazzino Italia SPV, will buy maturing cheese from the dairy while it stays in Brazzale's warehouses. Structured as a revolving facility, the deal creates ongoing working capital as the cheeses mature and sell.

Read more: Arkansas Democrat-Gazette