- LOCATION
Santa Teresa, New Mexico - LOAN AMOUNT
$14.22MM - LOAN TYPE
USDA Business & Industry (B&I) Guaranteed Loan Program - PURPOSE
Refinance
Project Overview
Louisiana Pepper Exchange (LPE) is a leading North American pepper mash and puree supplier to industrial food manufacturers, brands, and foodservice companies. To meet rising demand and strengthen its industrial platform, LPE developed a new tank farm on a 10-acre, rail-served site in the Ironhorse Industrial Park near the U.S./Mexico border.
Phase I includes 68 agitated mash storage tanks, supported by on-site rail and truck access. The facility focuses on large industrial customers and adds new food-manufacturing jobs in Doña Ana County.
Value-Driven Financing Solution
X-Caliber Rural Capital structured a $14.22MM USDA B&I Guaranteed Loan to refinance short-term bridge debt and convert the Santa Teresa project into long-term, permanent financing. The loan takes out the interim facility, funds remaining project costs, and shifts the capital stack to a stable, long-term with an initial interest-only period followed by long-term amortization.
This structure:
- Matches the loan term to the useful life of the tank farm and equipment.
- Reduces annual payment pressure versus shorter conventional terms.
- Removes near-term balloon risk and creates a single, predictable capital solution.
- Frees the working-capital line for inventory and seasonal needs instead of long-lived assets.
The result is a capital structure built for volume growth, margin improvement, and reliable supply to national food customers.
Key Benefits
- Converts high-cost, short-term bridge financing into long-term USDA B&I debt.
- Aligns repayment with the asset’s economic life and expected cash flow ramp.
- Supports expansion in a rural, rail-served, border-adjacent market with competitive logistics.
- Preserves full project scope: storage capacity, agitation technology, and rail infrastructure.
- Positions LPE to scale in a growing spicy and value-added foods category.
- Estimated jobs created: 20+
