I am old enough to remember the meltdowns that we had in the 1990s when prime rate of interest hit double digits and the American economy cratered when companies folded up and went out of business. Of course, I also remember 2008-2009 when the housing crisis hit and a lot of companies went out of business and banks lost a lot of money, etc. Here we go again.  We are now in the year 2020 and sitting on the brink of another emerging crisis.

Republic Business Credit works with the Azadian Group and Change Capital to provide flexible growth capital during the coronavirus pandemic. 

Encina Business Credit, LLC (“EBC”) announces the completion of a $75.0 million revolving credit facility for Horizon Global Corporation (“Horizon”). The facility will be used to replace an existing facility and will provide for ongoing working capital.

Jeffery Wacker, head of U.S. Asset Based Lending Originations, TD Bank, with contributed insights from Elizabeth Rust, Senior Economist, Keybridge in Washington D.C. and David Chmiel, Managing Director, Global Torchlight Limited from London, U.K.

Modell’s Sporting Goods. America’s oldest family owned and operated retailer of sporting goods, athletic footwear, active apparel and fan gear, today announced that the Company has voluntarily filed for relief under Chapter 11 of the Bankruptcy Code (“Chapter 11”) in the U.S. Bankruptcy Court for the District of New Jersey on March 11, 2020.
“We are extremely appreciative of the support that our lenders (JP Morgan Chase and Wells Fargo), vendors and landlords provided during this difficult period, engaging in extensive renegotiation efforts and allowing us to pursue every possible avenue to preserve the jobs of our loyal associates..." Modell’s Chief Executive Officer, Mitchell Modell, said.

Some of the companies hit hardest by the Covid-19 coronavirus are starting to talk to banks about short-term loans that would provide a safety net during the outbreak, according to people familiar with the matter. Discussions are preliminary and have occurred mostly with airlines, said the people, who asked not to be named discussing private information. Companies in industries such as energy and travel and leisure with investment-grade or high-yield ratings could also consider backup financings, they added.

Do not underestimate the impact of the Coronavirus on a company’s Q1 and Q2 2020 financial results.  The supply chain issues are unknown, the potential economic slowdown is unknown, and the length of time the impact will be felt is unknown.

This will certainly be a standard excuse for performance weakness that will be heard over the next year.  Be prepared!

As a lender, which borrowers do you consider for impact, and what do you do to stay ahead of the problem?

Citibank N.A ("Citi") acted as sole structuring agent. The bank syndicate for the RCF and TLA is led by Citi; Export Development Canada; Bank of Montreal; and Toronto-Dominion Bank; and also includes Canadian Western Bank; HSBC Bank Canada; and Bank of America, N.A.

Pioneer has received a commitment for $75 million in debtor-in-possession ("DIP") financing from PNC Bank.  Upon Court approval, the new financing and cash generated from the Company's ongoing operations will be used to support the business during the reorganization process.  PNC has also committed to "roll" the DIP financing into an asset-based revolving credit facility at exit.

Fifth Third served as Administrative Agent and Lead Arranger for this financing with Silicon Valley Bank (SVB) as Joint Lead Arranger on the investment. Soltage, working in partnership with Basalt managed funds, are deploying this investment through their previously established Helios capital vehicle.

Global Merchant Fund Corp. (GMF), a leading North American provider of financial solutions for middle-market companies, is pleased to announce the acquisition of Bibby Financial Services (Holdings) Inc. (Bibby NAM). Bibby NAM is the North American operation of Bibby Financial Services (BFS), a U.K.-based independent SME funder with operations in 14 countries.

Vernon Francois grew up in a Rastafarian household where the weekly tradition was having his hair braided every Sunday. The experience was so painful that he decided to learn how to braid hair himself, using carpets and window shade edges as practice.

All that practice paid off. When he was just Vernon Francois grew up in a Rastafarian household where the weekly tradition was having his hair braided every Sunday. The experience was so painful that he decided to learn how to braid hair himself, using carpets and window shade edges as practice.

Backed by Silicon Valley Bank, Goldman Sachs and Comerica Bank, TripActions secures up to $500 million debt facility to launch first-of-its-kind, end-to-end global corporate travel management and payments solution.

esVolta, LP today announced that it has closed an approximately $140 million senior secured credit facility to finance a portfolio of its utility-scale battery energy storage projects. The credit facility was provided by CIT’s Power and Energy business as the Mandated Lead Arranger, and Siemens Financial Services (SFS), CoBank, ACB, and KeyBanc Capital Markets Inc. as Joint Lead Arrangers.

Hercules Capital, Inc. announced it has replaced its existing $200.0 million credit facility with MUFG Union Bank N.A. with a new credit facility under which Royal Bank of Canada /City National Bank, a National Banking Association, Goldman Sachs Bank USA, Umpqua Bank, TIAA, FSB, Zions Bancorporation, N.A., dba California Bank & Trust, HSBC Bank USA, N.A., Hitachi Capital America Corporation and CIT Bank, N.A., together with MUFG, have committed a total of $400.0 million in credit capacity subject to borrowing base, leverage and other restrictions. 

MGP Ingredients, Inc. (MGPI), a leading supplier of premium distilled spirits and specialty wheat proteins and starches, today announced it has entered into a five-year $300 million revolving credit facility with a syndicate of lenders led by Wells Fargo Bank, N.A. (“Wells Fargo”). The new facility replaces the Company's $150 million credit facility with Wells Fargo and increases its credit availability by $150 million.

Santander Bank today announced that its Commercial Banking division closed a $25 million term-loan facility on behalf of Horizon Group USA. Santander acted as sole lead arranger for the transaction. Horizon Group, headquartered in Warren, New Jersey, is a craft and toy supplier with a customer base that includes major retail chains such as Walmart, Target, Costco, Amazon and Michaels. The financing will help Horizon Group monetize the significant growth in its value over the past few years.

LBC Credit Partners (“LBC”), a leading provider of financing solutions to middle market companies, provided a senior secured credit facility to support the acquisition of My/Mo Mochi Ice Cream (“Company”) by an investment fund managed by Lakeview Capital, Inc. LBC served as agent and sole lead arranger for the senior secured credit facility.