Article List

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.

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.

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.

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.

Amerisource Closes $17,000,000 Credit Facility for Industrial Sand and Construction Aggregate Firm

Amerisource Business Capital announced the closing and funding of a $17,000,000 senior credit facility for an Iowa-based sand and construction aggregate firm. The proceeds were used to continue the expansion of their business lines and support their ongoing working capital needs.

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.

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.

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.

Nassau Financial Group Forms Nassau Global Credit

Nassau Financial Group, L.P. (“Nassau”) today announced the formation of Nassau Global Credit (“NGC”), which combines Angel Island Capital Management (“AIC”) and Nassau Corporate Credit (“NCC”). NGC will be a subsidiary of Nassau’s asset management segment, Nassau Asset Management, and will be led by Alexander Dias as Chief Executive Officer and Jonathan Insull as Chief Investment Officer.

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.

Wayne Tentler Joins 36th Street Capital as EVP of Sales

36th Street Capital Partners LLC (“36th Street Capital”), an independent provider of alternative funding solutions for the equipment financing industry, announced the appointment of Wayne Tentler as Executive Vice President of Sales.

The addition of Mr. Tentler provides 36th Street Capital an opportunity to develop new client relationships while expanding the company’s position in the marketplace. Based in the Sarasota, FL, Wayne brings over 15 years of experience in corporate finance, including most recently serving as Commercial Leader for one of GE Capital’s Industrial Financing units.

SFNet Member Spotlight: Paladin Management Group, LLC

Paladin is a middle‐market advisory firm driving value creation through consulting services. We guide middle‐market companies and their stakeholders through challenging financial, operational, and strategic transitions.

Greystone and MONTICELLOAM to Form Joint Venture for Comprehensive Healthcare Capital Solutions

Greystone, a leading national commercial real estate finance firm, and MONTICELLOAM, LLC (“MONTICELLOAM”), that with its affiliates, provides specialized private real estate and asset-based lending, servicing management services and consulting, today announced their intention to combine their senior housing and healthcare lines of business under a new joint venture. The joint venture is anticipated to become a leading one-stop-shop provider of capital finance products and services for the senior housing and healthcare industry.

Aftermath

Aftermath means the consequences or aftereffects of a significant unpleasant event, like Covid-19. The financial system is going to experience this first-hand. No firm, whether it be bank or non-bank, will be left unscathed. The author is purposely writing this article now in order to predict that one of the many untold stories will be that the nation’s biggest banks were expecting the unexpected as it pertains to their middle-market C&I and ABL portfolios. Clearly, no bank in the country could have imagined a complete shutdown based on a virus, but what they could and did imagine was a severe depression irrespective of the cause. Not only were they expecting, but they were prepared in unexpected ways. The same cannot be said for certain community and regional banks and BDCs, which might not have had the resources, scale or wherewithal to prepare.

2024 Threats to Manufacturing and Industrial Businesses – Lenders Beware

How will reduced consumer spending and increased leverage cost stress manufacturing & industrial companies in the year ahead?

Wingspire Capital Provides $30 Million Senior Secured Loan to Arhaus

Wingspire Capital Holdings is pleased to announce the completion of a $30 million senior secured loan to home furnishings retailer Arhaus, LLC to support the company’s daily operations and continued growth.

Wingspire Capital leadership was already familiar with Arhaus and its executive team, and welcomed the opportunity to support a growing and innovative retailer that has been redefining the home furnishing space for more than three decades.

Sterling Bancorp Launches New Innovation Finance Group; John Hoesley and Josh Roberts to Spearhead New Vertical

The Innovation Finance Group will focus on providing a full suite of lending and banking products to growing technology companies across all stages of development, including asset-based solutions, recurring revenue-based revolving lines of credit, treasury management, foreign exchange and other solutions.

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