Articles

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.

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.

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."

First Eagle Alternative Credit, LLC (“First Eagle” or the “firm” ) today announced that it has added asset-based lending solutions to its direct lending platform and appointed industry veterans Larry Klaff and Lisa Galeota to lead this initiative at the firm.

Klaff and Galeota join First Eagle from Gordon Brothers Finance Company, a majority-owned portfolio company of BlackRock Capital Investment Corporation, where they worked together and at its predecessor firm for over 13 years. During that time they sourced, originated and structured asset-based facilities valued at over $1 billion across a wide variety of industries. They will be based at First Eagle’s Boston office and will report directly to Chris Flynn, President of First Eagle Alternative Credit.

Citizens announced today that it has provided a new asset-based revolving loan to Warminster, PA-based W. Atlee Burpee Company. Citizens is the sole lender.

Founded in 1876, W. Atlee Burpee Company is engaged in the wholesale distribution, direct marketing and retail sale of vegetable and flower seeds, plants, horticultural and other related products.

Northbrook-based private equity firm plans for succession

Big Shoulders Capital Chairman David Muslin has announced an expanded leadership team as the company plans for the next generation of growth. Joe Prudden has been promoted to President of the company from Chief Financial Officer, Alex Mazer is promoted to Executive Vice President from Vice President, Howard Spivack is promoted to Chief Financial Officer from Finance Director, and Evan Zwerman joins the company as Senior Vice President of Originations.

What are some effective ways to approach management regarding the sensitive topic of compensation, particularly as it relates to peers in the same role, and also within the current overall market?

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.

Rosenthal & Rosenthal, Inc., the leading independent factoring, asset based lending and purchase order financing firm in the United States, today announced the appointment of Leigh Lones as Senior Vice President, Southeast Regional Sales Manager, and Al Foster as Vice President, Business Development Officer. Lones will be based in the Atlanta office and Foster will operate remotely out of Tennessee.

Modell’s Sporting Goods. America’s oldest family owned and operated retailer of sporting goods, athletic footwear, active apparel and fan gear, today announced that the Company has voluntarily filed for relief under Chapter 11 of the Bankruptcy Code (“Chapter 11”) in the U.S. Bankruptcy Court for the District of New Jersey on March 11, 2020.
“We are extremely appreciative of the support that our lenders (JP Morgan Chase and Wells Fargo), vendors and landlords provided during this difficult period, engaging in extensive renegotiation efforts and allowing us to pursue every possible avenue to preserve the jobs of our loyal associates..." Modell’s Chief Executive Officer, Mitchell Modell, said.

It is not everyday that you are given an opportunity to live out the career you would have in an alternate universe, but that is exactly what happened to me, thanks to the SFNet Guest Lecture Program and SFNet MidWest Chapter President Jennifer Kempton, who kindly asked me to be the Guest Lecturer.   

Last month, Sarah Fyffe, vice president, Asset Based Lending, BMO Harris Bank, and I were able to virtually present ABL 101 to Professor Gregory Udell’s Entrepreneurial Finance Class at Indiana University on April 5.  It was without a doubt one of the coolest things I have ever done in my career and I am so grateful to have been involved. Education and mentorship are my favorite part of the job and, to do so in a university setting, was an incredible experience.  For Sarah, it was a chance to lecture to a classroom where she once sat as a student in Professor Udell’s class.  Talk about coming full circle!

CIT Group Inc. (NYSE: CIT) today announced that it has named Chris Esposito as managing director in charge of its newly expanded Asset-Based Lending business.

In this role, Esposito is responsible for managing the Asset-Based Lending team, overseeing the national ABL business, building new client relationships, developing strategies to address new target markets and ensuring outstanding customer service and satisfaction.