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SFNet Submits Comments on Out-of-Court Workouts to Financial Stability Board
Aug 24, 2021
As many SFNet members know, a strong work-out culture, in which lenders and their financially distressed borrowers use out-of-court workouts (OCWs") as a less costly and more efficient alternative to formal bankruptcy proceedings, is a well-established feature of the U.S. lending environment.
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Foundation’s 2021 Individual Campaign Concludes Successfully / Corporate Drive Gains Momentum
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SFNet’s Q2 2021 Asset-Based Lending Index Critical Insights
Aug 24, 2021
SFNet’s Q2 2021 ABL Index results have been published.
Economic Context
The economic recovery from the painful COVID recession of 2020 remains firmly on track and the secured lending industry continues to find its “new normal.”
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You Can Bend Credit Criteria Only So Far Before Something Breaks
The recession of 2008-2009 brought many lessons to the lending community; and the small independent finance companies were no exception. When looking back at that period, many of the lessons that we should all remember occurred in 2005-2007, during the lead up to the recession.
If you’ll recall, the economy was strong and business was booming. For small independent finance companies (that typically run counter-cyclical), new business was harder to come by and highly competitive. As is often the case, this led to aggressive structures and lower pricing, a bad combination.
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Prestige Capital Provided $5,000,000 to a Fashion and Jewelry Importer and Distributor that Pivoted to PPE Sales
Aug 23, 2021
Prestige Capital recently provided $5,000,000 to a fashion and jewelry importer and distributor that shifted to sell PPE and Medical Equipment during the pandemic. The funding was used to replenish resources required to produce these new items.
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AI In Secured Finance
Aug 19, 2021
While lenders and financial institutions are not looking to discover the next vaccine or medical breakthrough, artificial intelligence (AI) and machine learning (ML) have been reshaping traditional business processes at a rapid speed. Many decision makers in the C-Suites, while still responsible for ensuring everyday “blocking and tackling” is done, are dealing with how best to integrate AI/ML into their companies, and at what cost. This article takes a deeper dive into how AI and ML are being utilized in the industry along with the factors leaders must consider with AI/ML integration.
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Tiger Finance Provides $15.5 Million DIP Financing to Aluminum Shapes LLC
Aug 19, 2021
Tiger Finance has closed on a $15.5 million in debtor-in-possession financing to facilitate the Chapter 11 restructuring of Pennsauken, N.J.-based Aluminum Shapes LLC, a fully integrated manufacturer and distributor of aluminum products serving multiple industries.
Aluminum Shapes LLC, which operates a 500,000-square-foot facility in Pennsauken, filed for Chapter 11 bankruptcy protection on August 15th in the U.S. Bankruptcy Court in Camden, New Jersey.
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Graybar Announces Extension of $750M Revolving Credit Facility
Aug 18, 2021
Graybar, a leading distributor of electrical, communications and data networking products and provider of related supply chain management and logistics services, announced today that it has completed the amendment and extension of its unsecured committed revolving credit facility.
Bank of America, N.A. was the lead institution in the transaction and BofA Securities served as left lead arranger and sole bookrunner. JPMorgan Chase Bank, N.A., Wells Fargo Securities, LLC, PNC Capital Markets LLC, U.S. Bank National Association, BMO Capital Markets Corp., and Fifth Third Bank acted as joint lead arrangers. Regions Bank, Commerce Bank, and Comerica Bank also participated in the transaction.
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LBC Credit Partners Supports MPE Partners’ Investment in Ideal Aluminum, LLC
Aug 17, 2021
LBC Credit Partners (“LBC”), one of the leading providers of financing solutions to middle market companies, provided a senior secured credit facility to support Morgenthaler Private Equity’s (“MPE Partners” or “MPE”) investment in Ideal Aluminum, LLC (“Ideal” or the “Company’).
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CIT Northbridge Serves as Sole Lead Arranger on $50 Million Credit Facility for Intermetal Rebar LLC
CIT Group Inc. (NYSE: CIT) today announced that CIT Northbridge Credit, as advised by CIT Asset Management LLC, served as sole lead arranger on a $50 million credit facility for Intermetal Rebar LLC.
Headquartered in Miami, Florida, Intermetal Rebar is a leading importer and distributor of reinforcing bar ("rebar") and other structural products to distributors, fabricators, and contractors in the non-residential construction industry.
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SLR Business Credit Announces New Business Line
North Mill Capital LLC (d/b/a SLR Business Credit) (the “Company” or “SLR-BC”), today announced that it acquired Fast Pay Partners, LLC. Based in Los Angeles, CA, Fast Pay Partners enables clients to accelerate receivables and access liquidity through its asset based lending and factoring platform which primarily services media firms in the United States.
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Siena Lending Group Closes New $80 Million Credit Facility for iMedia Brands, Inc.
Aug 11, 2021
Siena Lending Group LLC ("Siena"), is pleased to announce the closing of an $80 million credit facility with iMedia Brands, Inc. (“iMedia” or the “Company”) (Nasdaq: IMBI) which was completed on July 30, 2021. In addition to the $80MM asset-based revolving credit facility, Siena arranged a $28.5MM term loan secured by Company-owned real estate which was completed in conjunction with Siena’s loan.
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Saks OFF 5TH Closes ABL and Term Loan Facilities to Further Enhance Liquidity
Aug 10, 2021
Saks OFF 5TH, the premier online luxury off-price destination, has closed on a syndicated $125 million asset-based five-year revolving credit facility jointly arranged by Citibank and Citizens and a $20 million term loan arranged by Callodine Commercial Finance.
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SFNet to Host Independent Finance Roundtable August 17-19 in Chicago, IL
Aug 9, 2021
SFNet will be hosting part two of its Independent Finance Roundtable 2021 August 17 - 19, 2021 in-person at the Renaissance Chicago Downtown Hotel in Chicago, IL. For 2021, we created a unique, invitation-only experience for senior executives from SFNet member entrepreneurial finance and factoring companies. IFR 2021 is a two-part event. The first part on April 27 was a free, live online roundtable discussion and an overview of our August in-person agenda. Panelists and attendees will come together next week to discuss the state of M&A, legal issues impacting our industry, and other timely topics that may affect your business.
In addition to the roundtable meetings and discussions, IFR will offer optional activities to take full advantage of your time in Chicago.
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Rosenthal Provides $30 Million Inventory Purchase Commitment for California-Based Solar Products Distribution Company
Aug 9, 2021
Rosenthal & Rosenthal, Inc., the leading factoring, asset-based lending and purchase order financing firm in the U.S., today announced the completion of a recent $30 million inventory purchase commitment to support the production financing requirements of a California-based importer and distributor of solar panels.
The company had been reflecting moderate sales growth from its existing customer base. Due to increasing demand for solar energy solutions, the company began to significantly expand its customer base nationwide. Production cycle timing, a challenging shipping schedule and ongoing freight and logistics issues impacting importers from Asia prompted the company to explore additional financing options as an alternative to raising equity with its existing third-party factoring company. The third-party factor introduced the client to Rosenthal to assist the client in structuring a purchase order financing solution.
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eCapital Corp. Announces Collaboration with Visa® Delivering Commercial Credit Products to Freight Clientele
Aug 9, 2021
eCapital Corp. (“eCapital” or “the Company”), a leading capital solutions provider for small and medium-sized businesses in North America and the UK, today announced the launch of a new commercial credit card program with Visa, the world leader in digital payments. The eCapital platform provides clients with direct connections to the funds in their eCapital accounts and robust reporting to manage all Visa transactions. Through this collaboration, the Company can offer clients new options for receiving funds through a commercial credit card and accessing a revolving line of credit to bridge the gap in day-to-day business cash flow.
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Restaurant Rebound Tests the Limits of U.S. Food Distributors
Foodservice distributors generally adapted well to the massive disruptions triggered by the pandemic, but the sector is feeling the strain of the latest shift—the rapid return of tens of millions of Americans to in-person dining.
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Encina Business Credit Announces Recapitalization and Expanded Capital Base To be Renamed Eclipse Business Capital
Encina Business Credit, LLC (“Encina”), a leading non-bank asset-based lender for both privately owned and publicly traded companies, today announced a recapitalization and a significantly expanded capital base provided by Barings LLC affiliated funds along with participation by Encina management. This recapitalization provides liquidity necessary for Encina to expand its platform and footprint as a leading working capital provider in North America.
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Siena Lending Group Announces Credit Facility Increase to $400MM
Siena Lending Group LLC ("Siena"), a leading independent asset-based lending company, today announced it has increased its senior credit facility with Wells Fargo Capital Finance to $400 million. This upsize will enable Siena to continue its growth following the firm’s historic results in the second quarter of 2021, when it closed more than $220 million in credit facilities for middle-market businesses across the country.
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Newtek Business Services Corp. Signs Agreement to Acquire National Bank of New York City
Newtek Business Services Corp., (Nasdaq: NEWT), an internally managed business development company (“BDC”), today announced that it entered into an agreement to acquire National Bank of New York City (“NBNYC” or the “Bank”), a nationally chartered bank with approximately $204 million in total assets and $36.5 million in tier 1 capital (each as of June 30, 2021; does not reflect the impact of pre-closing dividends to selling NBNYC shareholders) for $20 million in cash (the “Acquisition”).