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SFNet 75th Annual Convention Delivers Latest Insights on Secured Finance Strengths and Pressures

SFNet's 75th Annual Convention featured a fantastic lineup of thought leaders whose insights helped attendees see around corners and make the best decisions for their business. From leading private debt and equity players and supply chain experts to M&A advisors, ground-breaking economists and the best minds in the legal community, industry authorities shed light on the issues affecting attendees' business now and in the future. The latest data and forecasts including all new studies dimensioning the secured finance market and examining its inter-relationships was also presented. Whether an ABL lender, factor, advisor, intermediary or other, there was something for everyone in our Network.

Lenders Beware: Lender Liability

The past few years have seen strong liquidity in the marketplace coupled with unprecedented government support of certain borrowers; increased competition for secured transactions among banks and non-banks; and surprisingly fewer distressed transactions during the pandemic than would have been anticipated. As a result, lenders have not had to focus as much on managing distressed credits and the potential pitfalls and risks that are associated with them. As a few recent cases discussed below show, assertions of lender liability may arise in various contexts to an unsuspecting lender.

White Oak Commercial Finance Expands Asset-Based Lending and Lender Finance Team With New Managing Director of Underwriting

White Oak Commercial Finance, LLC (“White Oak”), an affiliate of White Oak Global Advisors, LLC, announced that Wes Reagan has joined the Lender Finance Team as Managing Director of Underwriting. He will be responsible for underwriting, sourcing, structuring, and managing lender finance and ABL transactions as part of White Oak’s expanded lender finance and asset-based lending platform. Wes is based in Atlanta and will report to Neal Mulford, the Head of Underwriting and Portfolio Management.

Review and Forecast with Joseph Nemia, Executive Vice President - Head of Asset Based Lending at TD Bank

Joseph Nemia looks back at 2019 and discusses what the secured finance industry can expect to see in 2020.

Gannett Refinances $1B in Debt From Merger in Cost-saving Move, Arranged by Citigroup Global Markets

Gannett, owner of USA TODAY and more than 260 other publications, said Monday that it has refinanced about $1 billion in debt in a move that will lower the company’s interest payments and save tens of millions of dollars a year.

The new $1 billion loan, arranged by Citigroup Global Markets, will mature in February 2026, the company said, replacing debt that was due in November 2024. The deal is scheduled to close early next week.

The move refinances more than half the loan that bankrolled the merger of GateHouse Media parent New Media Investment Group and the company previously known as Gannett in November 2019. The combined company took the name Gannett.

Results of SFNet’s Groundbreaking DEI Survey

SFNet’s DEI Committee, in conjunction with Rutgers University and underwritten by the Secured Finance Foundation and Wells Fargo, released the results of the first-ever DEI Survey, which provides a comprehensive perspective on the current state of diversity, equity and inclusiveness among SFNet member companies.

Tenable Announces Closing of New Senior Secured Credit Facility

Tenable®, Inc. (“Tenable”), the Cyber Exposure company, today announced it has entered into a new credit agreement, which is comprised of a $375.0 million senior secured term loan facility (the “Term Loan”) and $50.0 million senior secured revolving credit facility (the “Revolving Facility” and, together with the Term Loan, the “Credit Facility”).

JPMorgan Chase Bank, N.A., Morgan Stanley Senior Funding, Inc., Bank of America, N.A., and Barclays Bank PLC acted as joint lead arrangers and joint bookrunners for the Credit Facility.

Jennifer Cann Joins Bank of America Business Capital as SVP

Bank of America Business Capital announced that Jennifer Cann has joined as senior vice president and head of the Retail Finance Group Portfolio. Based in Boston, Jenn manages the ABL Retail Portfolio team responsible for credit, monitoring and strategic development.

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”).

Get to (Really) Know Rob Meyers

The following interview is a transcript from SFNet YoPro Committee member Avi Levine interviewing Rob Meyers, president, CCO & managing member of Republic Business Credit, in April 2020. Rob previously served as chair of SFNet's National Young Professionals Committee and spearheaded the YoPro Annual Leadership Summit, now in its third year. We hope you enjoy getting to know the industry’s young professionals.

A New Multinational Financing Frontier? Recent US Tax Guidance Opens New Avenues of Foreign Credit Support for Certain US Borrowings at an Uncertain Cost

As lenders, borrowers and their advisors are well aware, the enactment of what is informally referred to as the Tax Cuts and Jobs Act (the “TCJA”) introduced fundamental changes to U.S. tax law that immediately impacted the structuring, terms and implications of financing arrangements. Although the TCJA’s initial effects were significant, the prospect of future material changes also existed in the form of implementing guidance. True to that promise, recently finalized regulations (the “Regulations”) promulgated under Section 956 may have the most dramatic effect yet on financing arrangements involving multinational companies.

Inscape Announces new and Increased $15,000,000 Credit Facility

Inscape Corporation ("Inscape" or the "Company") (TSX: INQ), is pleased to announce that the Company has today entered into a new $15,000,000 senior credit facility with FrontWell Capital Partners Inc. (“Frontwell”) to replace the company’s existing senior credit facility with CIBC. The new loan facility (the “Loan Facility”) is a secured revolving credit facility having a committed term of twelve months, with options to renew thereafter. The proceeds of the Loan Facility will be used to repay existing indebtedness of the Company, finance new capital equipment and for general working capital purposes.

Wingspire Capital Provides $46 Million Senior Secured Credit Facility to Worldwise, Inc.

Wingspire Capital LLC (“Wingspire”) is pleased to provide a $46 million senior secured credit facility to Worldwise, Inc., a leading designer and supplier of pet products.

The transaction includes a $30 million revolving line of credit and a $16 million term loan to replace the previous credit facilities and enable Worldwise to meet the growing demand for cat and dog toys, beds, carriers and other pet products as the pet category continues to grow both in the U.S. and worldwide.

SFNET, Peoples United Bank and EisnerAmper Partner with Temple University

As an SFNet Chapter leader, some of the most enjoyable times are spent working with the next generation. Joe Accardi, Head of New Business Development at Peoples United Business Capital, and I did that earlier this fall at Temple University, where I have been an adjunct professor for the last 11 years. During the last two semesters, Joe has led discussions on asset-based lending (ABL) with graduating seniors. Jeff Walsh and the team at SFNet prepared a slide presentation on the particulars of ABL and Joe also prepared a separate supplement.

White Oak Commercial Finance Welcomes Garrick Tan as Managing Director in Boston

White Oak Commercial Finance ("White Oak") is pleased to announce that Garrick Tan has joined the firm as a Managing Director and Business Development Officer of its expanded ABL and Lender Finance platform. This is one of three new senior BDO positions filled to join the existing five-member Originations team, which focuses on sourcing transactions with committed capital needs ranging from $15 - $250 million. He will report to Vice Chairman, Andrew McGhee.

Alleon Healthcare Capital Provides a $750,000 Medical Accounts Receivable Financing Facility to a Pennsylvania-Based Pharmacy

Alleon Healthcare Capital ("Alleon"), a specialty finance company focused on providing healthcare accounts receivable financing, medical accounts receivable factoring, and cash flow solutions to medical providers in the U.S., recently closed a $750,000 medical accounts receivable financing facility with a pharmacy in Pennsylvania (“Company”).

Innovation, Competition and Consolidation in the Non-Bank Small-Ticket ABL Space

The sub-$10 million ABL facility space has long been a paradox. Over the years, new capital providers havee entered only to chase too few loans, while incumbent asset-based lenders shift and migrate strategy. This creates a shortfall of good assets, and the cycle continues. But it’s not always that easy. Right now, we sit in what should soon be the start of a brand new cycle thanks to Covid-19. The past few years have been brutally competitive for the sub-$10 million ABL industry given the new entrants, specialization and certain vintage firms migrating upmarket. Top of the market, like the last few years, may seem like an auspicious time to raise capital to form a new ABL shop, but that is exactly what happened in expectation of a re-set. The difference now is that the bar is higher and the need for scale or a point of difference, whether it be industry focus, national scale or selling strategy, has never been greater.

Huntington Business Credit Closes $250 Million Credit Facility with Concordance Healthcare Solutions, LLC

Huntington Business Credit acting as administrative agent and joint lead arranger announced it closed a new $250,000,000 credit facility with Concordance Healthcare Solutions, LLC on December 28, 2020. Proceeds of the facility were used to refinance existing indebtedness and to provide ongoing working capital growth financing.

PPE Funding Roundtable

Four executives from SFNet member companies discuss their experience in adapting to the surge of funding requests for personal protection equipment (PPE). TSL Express sat down with Jeff Goldrich, president and CEO, North Mill Capital; Edward King, founder and managing partner King Trade Capital; Paul Schuldiner, executive vice president and purchase order finance division manager, Rosenthal & Rosenthal; and Scott Winicour, CEO, Gibraltar Business Capital to learn more.

Great Rock Capital Expands Management Team, Adds Chief Risk Officer

Great Rock Capital, an asset-focused commercial finance company specializing in middle market lending, today announced Kathleen Auda has joined the firm as Chief Risk Officer. Auda will be responsible for overseeing both the underwriting and portfolio management teams and will report to Stuart Armstrong, CEO and CIO.

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