An artist's rendering of the California Custom Processing expansion facility planned in Madera by 2025. CCP image

A Madera almond processor plans to use $33.5 million from a mixed-financing transaction to expand and refinance existing debt.

Founded in 2012, California Custom Processing in Madera provides processing services for almond growers and distributors in a 65,000 square-foot facility near the Madera Municipal Airport. The new financing will allow for construction of an adjacent 52,000 square-foot facility by 2025, retaining 48 full-time jobs, according to a news release.

The lending package was written by New York-based commercial real estate finance franchise X-Caliber and affiliate CastleGreen Finance.

X-Caliber Rural Capital provided $29.5 million from the U.S. Department of Agriculture’s Food Supply Chain Guaranteed Loan Program, part of the Build Back Better initiative to strengthen supply chains and the food system.

CastleGreen provided $4 million in financing through the state’s Commercial Property Assessed Clean Energy (C-PACE) program

C-PACE is structured to finance renewable energy improvements at California Custom Processing, including a rooftop solar array and battery storage. The system is estimated to produce 1.5 million kilowatt hours of electricity annually and save $14.3 million in energy bills in its lifetime.

California Custom Processors Chief Financial Officer Leighton Allen says the hybrid financing provided a competitive long-term solution, with significant overall operational savings.

“A strategic blend of a C-PACE structure and a USDA loan created a powerful hybrid financing solution, delivering both long-term competitiveness and remarkable operational savings. It’s a smart move that brings significant financial benefits while supporting our environment and local jobs market,” Allen said.

The companies provided a similar financing package in October 2022 for construction of the 250,000 Amond World almond processing facility in Madera. The $52 million package included $35 million through the USDA and $17 million from C-PACE.