Articles

SFNet surveyed bank and non-bank lenders on 2022 performance and 2023 outlook

NEW YORK, NY,April 26, 2023 ─ There was solid growth in commitments and outstandings in the asset-based lending market last year and portfolio performance was strong, according to data released by the Secured Finance Network. The factoring industry proved similarly resilient in a challenging economy and began 2023 on a positive note.

Lender confidence held steady, as well, with banks and non-bank lenders maintaining a positive outlook despite inflation and higher interest rates. In the most recent Confidence Index, they pointed to the industry’s resiliency and had high expectations in the demand for new business, hiring and client utilization.

Bed Bath & Beyond on Sunday filed for Chapter 11 bankruptcy protection after it failed in several last-ditch efforts to raise enough money to keep the company alive

Sixth Street has agreed to lend Bed Bath $240 million in debtor-in-possession financing so the company can have the cash flow necessary to support operations through the bankruptcy process. Bed Bath said it plans to continue to pay employees wages and benefits, maintain customer programs and honor obligations to vendors.

This article discusses the bitcoin mining industry’s role in providing demand support to energy producers by monetizing otherwise stranded energy produced from oil drilling and solar and wind facilities. Consumption of stranded energy by bitcoin miners should help secured lenders underwrite loans, because it can reduce air pollution resulting from natural gas flaring and improve life cycle economics of renewable energy sources. 

MidCap Financial, a leading commercial finance company focused on middle market transactions, today announced it has provided a senior revolving credit facility to SCCI National Holdings, Inc. (“Shimmick” or “Company”). Proceeds from the MidCap credit facility will provide for the business’ ongoing working capital needs.

BMO today announced the appointment of Darrel Hackett as U.S. Chief Executive Officer of BMO Financial Group, President & CEO of BMO Harris Bank N.A., and CEO of BMO's U.S. holding company, BMO Financial Corp. (BFC). Mr. Hackett will report to Chief Executive Officer Darryl White, join the bank's Executive Committee, and will chair the U.S. Management Committee. His appointment is effective June 1, 2023.

Rosenthal & Rosenthal Southeast, a wholly-owned subsidiary of Rosenthal & Rosenthal, Inc., the leading factoring, asset based lending, purchase order financing, d2c and e-commerce inventory financing firm in the United States, today announced it has acquired Lyon Capital Corporation, the factoring division of Lyon Credit Services, the premier credit reporting agency in the home furnishings industry since 1876.

Wingspire Capital LLC is pleased to announce that it completed five transactions with cumulative commitments of more than $230 million in the first quarter of 2023.

The types and sizes of the transactions were diverse, as were the borrowers — ranging from a major cosmetics brand to a travel technology platform to a global cloud networking provider.  The senior secured credit facilities included revolvers, exit financing as part of a pre-packaged bankruptcy, an add-on financing term loan, and an agented $125 million facility.

Encina Private Credit (EPC) today announced the appointment of two key executives who will significantly contribute to the company's growth and expansion. Ian Nalitt has joined the company as Managing Director of Originations, and Brian White has been appointed as Senior Vice President of Capital Markets.

Siena Healthcare Finance today announced the closing of a $15MM working capital facility for Michigan based Optalis Health & Rehabilitation. Siena provided the line of credit for Optalis’ acquisition of a new SNF group.

SFNet's International Lending Conference (ILC) brings together some of the most interesting players on the international lending scene for discussions and insights into what lies ahead. This year’s Conference will be held at DLA Piper Offices, May 9-11, 2023.

“War, energy crisis, high inflation, synchronized interest rate hikes and stagnation in China, should have pushed the European economy in a deep recession,” said economist and journalist, Dr. Mathijs Bouman, who will kick off the Conference. “But, the old continent is more resilient than many feared and the downturn could turn out to be shallow and short-lived. But new challenges lay ahead for European industries: the structurally tight labor market, trade and investment wars and fragmentation of the world economy and the rising costs of climate policy.” 

After more than ten years and extended litigation to compel rulemaking, on March 30, 2023, the Consumer Financial Protection Bureau (CFPB) issued the final rule which implements the small business lending data collection requirements set forth in section 1071 of the Dodd-Frank Act (Section 1071).  The final rule, together with the comments, is just under nine hundred pages.[1]  Broadly presented, the final rule can be broken down into a series of questions to be answered.  First, are the lender, the borrower and the transaction covered by the rule?  Second, what information must be collected and reported?  Third, how is the information reported?  Fourth, when does the rule take effect?

US bank lending contracted by the most on record in the last two weeks of March, indicating a tightening of credit conditions in the wake of several high-profile bank collapses that risks damaging the economy.

Commercial bank lending dropped nearly $105 billion in the two weeks ended March 29, the most in Federal Reserve data back to 1973. The more than $45 billion decrease in the latest week was primarily due to a a drop in loans by small banks.

Last year was not the type of “cascade” we thought it would be – at all – as 2022 turned out to be more characterized by a surge of rising rate hikes and new concerns, versus a wave of new deals. Undeterred, we’re back this year to so see what could be infashion for factoring in 2023.

First on our list, the hot new color for this year – Viva Magenta!

Gordon Brothers, the global advisory and investment firm, has named Samantha Schackman Director, Business Development.

Schackman works with asset-based lending, investment banking and private equity professionals in Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont to identify valuation, disposition and lending opportunities for Gordon Brothers and will expand the firm’s presence in the Northeast.

DataBank, a leading provider of enterprise-class edge colocation, interconnection, and managed cloud services, announced today that it has secured another $350M in financing to fund the ongoing expansion of its edge data center footprint. Led by TD Securities, the $350 million credit facility includes a $175 million, 5-year Term Loan, a $125 million Delayed Draw Term Loan ("DDTL") which is undrawn at close, and a $50 million revolving credit line. 

RelPro, the fast-growing business development and relationship management solution for Financial & Professional Services, today announced that Raaj Rajmangal has been appointed as President of RelPro. Rajmangal, who previously served as the company’s Chief Technology Officer, will now be responsible for RelPro’s strategic development and execution. RelPro CEO and Founder Martin Wise will continue as CEO to drive the corporate vision, working closely with RelPro’s clients and partners.

It’s no secret that, despite great progress in the last couple of decades, secured finance remains a male-dominated field. Here, we shine the spotlight on three unique SFNet members whose teams are made up of more women than men.

40-year ABL executive Mike Knuckles to lead metro Atlanta office serving U.S. South

GULFPORT, Miss. (April 3, 2023)—Hancock Whitney has established a new companywide asset based lending (ABL) division primarily serving 12 states across the southern United States. Mike Knuckles, an asset based lending executive with decades of industry experience, will lead the line of business based in suburban Atlanta, Georgia, and direct all recruiting and hiring.