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Encina Business Credit, LLC announced today that is has provided a $25 million senior revolving credit facility to an e-commerce retailer.

The senior secured revolving line of credit, which is collateralized by accounts receivable, and inventory, was used to provide working capital financing.  In addition, the facility offers a $10 million accordion feature that allows for future growth.

Financial analysis is a cornerstone for any credit administration function.  Each loan officer must know his or her borrowers and thorough financial analysis is the best way to start.

The goal of financial analysis is to link business events to changes in the balance sheet, income statement and cash flow to explain the company’s performance during the period under analysis.  Without this linkage you end up with “elevator analysis” (sales are up, AR is up, EBITDA is down, etc.) and no meaningful understanding of the company’s performance.

Where do you start?  EBITDA is often a starting point for many people.  Why?  It is a standard measure of performance in the banking and finance industry.  EBITDA is a measure of the profitability generated by a business before interest expense, tax expense and depreciation and amortization expense.  While this gives the analyst a place to start and some ability to compare to comparable companies, EBITDA should not be viewed as a proxy for cash generation ability. 

First Citizens Bank today announced that it has hired experienced banker Linda Stanley as a relationship manager in its Middle Market Banking business.

In this role, Stanley will be responsible for developing, maintaining and expanding client and prospect relationships in the middle market financing sector, where the bank is a leader.

S&T Bank has named Eric Huff as senior vice president, managing director of asset-based lending.

With over 25 years of experience in financial services, most recently as the senior regional director and business development officer at Huntington Bank, Huff brings a wealth of knowledge and experience. In his role at S&T Bank, he will be responsible for the ongoing sales and growth of the bank’s asset-based lending portfolio.

Aaron Hughes, Managing Director of Equiniti Riskfactor, a leading provider in the commercial finance industry, examines the SME lending market for the coming year and the importance of risk management to lenders.

Fifth Third Bank, National Association, announced today that Mitchell Feiger, the chairman and CEO of Fifth Third Bank (Chicago), will retire on May 29, 2020. Succeeding him as the leader of the Chicago region will be Mark Hoppe, who had been named to the post of regional president in July 2019. Feiger had served in his current role since the merger of Fifth Third Bank and MB Financial in March 2019. He previously had served as president and CEO of MB Financial. 

Gerber Finance found the ideal candidate in Andrew Hollingsworth to develop its Natural Products Group and set up a west coast operation to serve its clients' growing portfolio. Andrew possesses a keen understanding of the mindset and needs of natural product companies, having served as CFO for Numi Organic Tea, and brings a deep background in banking, accounting, and finance. Andrew manages Gerber Finance's growing portfolio of natural products clients who value the consultative, relationship that is the hallmark of the Gerber formula. Natural Products Group clients include baby food and products, mushroom mycelium powders, protein powders, sustainable and reusable food storage bags, organic tea, and Asian bone broths and noodles.

As the former CFO of Numi Organic Tea, Andrew was first a client of Gerber Finance, supporting the growth of the business and the brand's expansion. In his role, Andrew garnered an in-depth knowledge of supply chains, business seasonality, and cycles, supporting the need for investment in innovation and the expansion into new markets, leading strategic planning and analysis, debt financing, and investment rounds.

SFNet’s Asset-Based Capital Conference (ABCC) is returning to Las Vegas, February 8 - 9, 2022 at the Encore at the Wynn in Las Vegas, NV, and will offer outstanding networking opportunities and insightful panels geared specifically for asset-based lenders in the capital markets. This conference brings together the decision makers who get deals done. A virtual attendance option supported by our online platform, SFNet Connect, will also be offered. ABCC will coincide with TMA's Distressed Investing Conference, allowing the ever-popular Joint SFNet/TMA Reception to be held again this year.

“We recognize the importance of fulfilling our purpose of bringing together the resources that put capital to work – especially in this environment,” said Richard Gumbrecht, CEO, SFNet. “We are encouraged by the positive response to holding the meeting in the safest way we can, including live streaming and outdoor networking under heat lamps. We are seeing a significant and growing number of in person registrants who are committed to a productive experience, including over 600 participants expected for the joint reception with TMA alone.”

The pressures brought on by the Covid-19 pandemic have increased the likelihood of borrowers breaching their financial covenants. Secured lenders should be aware that force majeure clauses in contracts might be invoked by companies. Here, industry executives provide their views on this concern. 

On Sunday night, March 22, 2020, the federal banking agencies (OCC, FDIC, NCUA, Federal Reserve), the Consumer Financial Protection Bureau and the State Conference of Bank Supervisors issued an Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus.

White Oak Commercial Finance (“White Oak”), an affiliate of White Oak Global Advisors, announced today it has purchased a portfolio of asset-based loans from Veritas Financial Partners, a Boca Raton, FL based specialty finance company.

White Oak Commercial Finance is pleased to announce that Martin F. Efron has joined the firm as the portfolio manager in New York, serving the Northeast region. He will report to Bob Grbic, CEO and president of White Oak Commercial Finance.

CIT Group Inc. (NYSE: CIT) today announced that its Power and Energy business served as coordinating lead arranger on a $323 million refinancing of the Coso Geothermal power facility in Southern California.

Originally developed in 1987, the 142-megawatt Coso Geothermal facility has been a steady source of renewable power for the Southern California region for more than three decades. The Coso site is considered one of the top three producers of geothermal electrical power in the United States.

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