Oak Island Seafood Inc. is riding a wave of new growth thanks to a successful effort to diversify its business worldwide. In less than three years, the company has grown from a regional importer and distributor of scallops to a global seafood supplier.
     In 2003, Jay Trenholm, owner of Oak Island Seafood in Rockland, Maine, approached TD Banknorth looking for a bank to help finance its newly diversified and growing business.
     "Part of my strategy to grow the business was to build an export program for sales to Western Europe," says Trenholm. "To identify potential new markets, I worked with the Maine International Trade Center and attended seafood expos in Switzerland and Brussels. Both trips produced two good customers that formed the foundation for Oak Island's export business."
     In order to support his growing export business, Trenholm needed to pack larger quantities of inventory, and to borrow against both his inventory and his growing foreign accounts receivable. The Export-Import Bank's Working Capital Guarantee Program provided a perfect solution. The generous advance rates offered by the program - 75% against foreign destined inventory and 90% against foreign accounts receivable - enabled the company to leverage its growth.
     As a Delegated Authority Lender with Ex-Im Bank, TD Banknorth was able to quickly review and underwrite an Ex-Im Working Capital facility. Oak Island Seafood is now in its third year using the Ex-Im Working Capital Program. Today, exports represent more than 50% of the company's total sales, and Oak Island Seafood employs 31 workers at its Rockland processing plant.
     TD Banknorth also has helped Oak Island Seafood with everything from documentary collections to loan guarantees and foreign currency risk management.
     In March 2005, TD Banknorth Inc. became a majority-owned subsidiary of the Toronto Dominion Bank Financial Group. As one of the 30 largest commercial banking organizations in the United States, the bank offers comprehensive international banking solutions for importers and exporters. On July 12, 2005, the company announced it had entered into a definitive agreement to acquire Hudson United Bancorp of Mahwah, N.J.
     ""This acquisition is consistent with our growth strategy and will significantly expand our franchise in both Connecticut and eastern New York, while providing us with a presence in the fast-growing markets of New Jersey and Philadelphia," says William J. Ryan, TD Banknorth's chairman, president and chief executive officer.
     Ben Schwartz, senior vice president and director of international banking at TD Banknorth, adds that "by offering traditional and innovative financing techniques, we can work with our customers to structure trade terms that minimize risk and maximize liquidity to enhance their overall competitiveness in the international marketplace."
     Moreover, says Schwartz, "we utilize the full range of international trade tools - such as wire transfers, foreign exchange contracts, foreign drafts, foreign checks, letters of credit, bankers acceptances and documentary collections, as well as lines of credit - in support of our customers who import or export."
     A mainstay of international trade, letters of credit are valuable tools when used to settle payments in transactions for goods and services, both imported and exported. "They help protect buyers and sellers against potential error and credit risk," says Schwartz. "We tailor these instruments appropriately to fit the specific business needs of our customers."
     The role of an international banker is constantly evolving in response to the changing global marketplace. For example, the emergence of China, India, Mexico and Brazil as major U.S. trading partners requires new solutions for managing associated risks. At the same time, traditional U.S. trading partners - Europe, Canada and Japan - still represent a large share of imports and exports. For those markets, the banking focus continues to be on managing foreign exchange risk for euros, pounds, Canadian dollars and yen.
     "Companies large and small," notes Schwartz, "need to have a strong partnership with an international bank to help manage these issues in a relationship with economic benefits for both parties. Our community-based banking approach enables us to deliver world class customer service and customized solutions for our business customers."

More information about TD Banknorth's international banking services is available online at www.tdbanknorth.com or by contacting Ben Schwartz, 781-229-5450, bennett.schwartz@tdbanknorth.com