Articles

Santander Bank, N.A. (“Santander Bank” or “Santander”) today announced the appointment of Scott Baldinelli as Head of New England Middle Market Banking. Baldinelli will report to Joe Abruzzo, Head of Commercial Banking for Santander Bank.

Baldinelli will lead business development, market growth and relationship management for Commercial Banking’s middle market segment in New England, encompassing the company’s Boston-based location. The industry veteran will assume the role from Robert Cerminaro, who was recently promoted to Head of Mid-Corporate Banking in Santander’s Commercial Banking division.

Twin River Worldwide Holdings, Inc. (NYSE: TRWH) announced today that it had successfully syndicated an expansion to the term loan facility in its existing bank credit agreement by $275 million.  Funding, which is expected to occur on May 11, 2020, is subject to final documentation and customary conditions.

Borrowings under the expanded term loan facility will bear interest at LIBOR + 8.00% per annum through the 2026 maturity date.  The loan will be issued with an original issue discount of 97 and will be non-callable for 18 months.  After 18 months the loan is callable at a price of 104.5% of par, and after 30 months the loan is callable at par.

The Women in Secured Finance e-newsletter's feature interview for this issue is with Melissa Mok, director of asset-based lending for Truist Securities. Mok joined Truist Securities in 2014.  Located in Texas, she is responsible for ABL originations of mid- and large-cap companies and is currently focused on the Financial Services, Energy and Industrial Services. TMT and TME industry verticals.

PNC Bank, National Association, announced today the closing of a $42.38 million senior secured credit facility for Madison-Kipp Corporation (MKC), a portfolio company of Dallas, TX-based Trive Capital. PNC Bank, N.A., served as administrative agent.

MUFG Union Bank today announced that Anvar Hodjaev has been named Head of Healthcare for its Commercial Banking division. Based in Los Angeles, he will lead the bank's Healthcare industry team and report to Adam Feit, Managing Director and Head of Financial Sponsors, Healthcare, and Life Sciences.

"Anvar brings a wealth of experience and expertise to a crucial business for MUFG Union Bank," Feit said. "As half of our lending commitments come from industry specialties, we continue to lean into our ability to leverage the combination of both local coverage and specialized industry expertise in critical individual sectors for our clients."

Encina Business Credit, LLC announced today that it has provided a $30 million senior secured revolving credit facility to an e-commerce retailer.

The senior secured revolving line of credit, which is collateralized by accounts receivable, credit card receivables, and inventory, was used by the company’s private equity investor to finance its acquisition and ongoing working capital financing needs.

On March 27, 2020, Congress approved the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”).  The CARES Act includes extensive provisions to address the current public health crisis, including, among other things, $349 billion of commitments for general business loans under Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) through June 30, 2020 under Title I of the CARES Act, titled “Keeping American Workers Paid and Employed Act,”  which sets out the terms for the “Paycheck Protection Program.”

The Paycheck Protection Program has been of particular interest to members of Secured Finance Network because it provides potential interim financing for small businesses that are typical borrowers from many member lenders.

Following up on the description in the articles above here are answers to some frequently asked questions from members of the Secured Finance Network.

SLR Business Credit announced it provided a $2,500,000 asset-based revolving line of credit to a producer of high-quality fresh and frozen meat.

When a group of investors with industry experience found the opportunity to purchase a Midwest producer of high-quality fresh and frozen ground meat out of bankruptcy via a 363 sale, they turned to their community bank.

Santander Bank announced that it closed the following deals:

•            A $142 million deal with WEX Inc., a ME-based financial technology service provider. The deal will support WEX Inc.'s acquisitions of Noventis, a provider of bill and invoice payment delivery, and Discover Benefits, a provider of employee benefits administration.

•            A $120 million deal with The Eastern Company, a CT-based industrial metals products manufacturer. The deal will support The Eastern Company's acquisition program and aid in its purchase of Big 3 Precision Products, Inc., a turnkey packaging solutions provider. 

The Q3 2020 Asset-Based Lending Index reflects improving confidence for lenders, fears of a double-dip downturn subsiding, and exhibits the continuing impact of PPP funds distributed in April. The U.S. economy rebounded during Q3 as lockdowns subsided, leading to a GDP surge of 33%.

This growth had a clear impact on portfolio health with non-accruals, special mention, and write-offs reducing quarter over quarter.

TSL: Congrats on your 10-year anniversary! Scott, what would you say are the biggest changes Gibraltar Business Capital has undergone over these last 10 years?

Scott Winicour: Thanks! It’s been a wild ride these last ten years, but probably the biggest change is when I bought the company from my father ten years ago with the help of private equity. It was a very small, regional player in the factoring space that did average-sized deals of $50,000 to $250,000. One of the biggest changes today is we don’t really do any factoring anymore, and that’s because we’ve morphed into an asset-based lender as opposed to a more traditional factor.  Another big change is that we now have a nationwide presence.  So, we went from a small, localized factoring-only business to a national brand name that people know, with salespeople all across the country. That is, by far, the biggest change.

People's United Bank, N.A. a subsidiary of People's United Financial, Inc. (NASDAQ: PBCT), has expanded its Commercial Specialty Business with the formation of a dedicated Lender Finance team. The team will be led by Patrick Lee, Managing Director, Head of Lender Finance, Asset-Based Lending, and be an extension of the Bank’s existing Asset-Based Lending group.

IDB Bank®, a New York-based private and commercial bank, announced that Ran Fuchs was named senior vice president and head of Capital Markets by IDB Capital, the broker-dealer subsidiary of IDB Bank.  

Fuchs' role at IDB Capital follows years of financial and investment experience. With over a decade of experience teaming up with investors and their advisors, Fuchs has raised over $1 billion in equity capital for Equity REITs, Mortgage REITs, BDCs, REG-Ds, DST/1031s and other investments in that space where financial services and income-producing investments intersect.