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From Disruption to Transformation. SFNet Responds to Meet the Needs of the Industry

CIT Group Inc. (NYSE: CIT) today announced that its Power and Energy business served as coordinating lead arranger on a $151 million financing for the 250-megawatt Galloway I solar farm planned for Concho County, Texas.

The financing was arranged on behalf of Skyline Renewables and 8minute Solar Energy (8minute), which will continue to jointly oversee development and construction of the project. Galloway I was acquired by Skyline Renewables, an experienced renewables company backed by the infrastructure team at Ardian, a world-leading private investment house.

- Debt covenant amended

- Raised $120 million in additional revolver capacity

- Total liquidity position of $3.8 billion

- Cost reduction program launched with target 2020 savings of $500 million

Geopolitical Strategist Peter Zeihan is a global energy, demographic and security expert. Zeihan’s worldview marries the realities of geography and populations to a deep understanding of how global politics impact markets and economic trends, helping industry leaders navigate today’s complex mix of geopolitical risks and opportunities.  Zeihan will be the keynote speaker at SFNet’s Annual Convention in New York City, November 13-15.

This column highlights the hard work and dedication of SFNet committee volunteers. Here we speak with William Bence, the chair of SFNet’s Young Professionals (YoPro) Committee and principal, Wingspire Capital, who was profiled in the September 40 Under 40 theme issue of The Secured Lender magazine.

The Federal Reserve Bank of Boston on Monday announced that the Main Street Lending Program is now fully operational, ready to purchase participations in eligible loans that are submitted to the program by registered lenders.  The Federal Reserve encourages lenders to begin submitting qualifying loans.

“This is an important milestone for the Main Street program,” said Eric Rosengren, president of the Boston Federal Reserve Bank, which is administering the program for the Federal Reserve System. “Given the pandemic’s shock to the economy, and its uncertain duration, support for businesses and their employees through bank lending is critical.”

Kirkland & Ellis LLP is serving as legal counsel to the Company, Lazard Ltd. is serving as the Company's investment banker, and Berkeley Research Group is serving as the Company's financial advisor.

The Extended Term Loan Lenders are represented by Wachtell, Lipton, Rosen & Katz as legal counsel and Ducera Partners LLC as investment banker.

Private credit investment manager WhiteHawk Capital Partners, LP (“WhiteHawk”) launched in 2020 with a focus on providing asset-based financing solutions to primarily middle market companies in need of liquidity and growth capital.

WhiteHawk is led by Managing Partners John Ahn, Robert Louzan and Harry Chung, formerly of Great American Capital Partners, also known as GACP, a division of B. Riley Financial. The Managing Partners were joined by their 10-member investment team, ensuring continuity of the firm’s demonstrated investment process.

In this installment of our series of executive interviews, Charlie Perer sits with Tim Stute to understand his views on the ABL industry, consolidation, new trends including specialization and state of the M&A market, among other things.

A designer of high-end handbags and accessories lost coverage on some of their retail customer accounts due to COVID-related challenges. When their existing bank was unable to cover those customers and restricted their borrowing capacity, the client reached out to Rosenthal.

When one of the world’s largest manufacturers of premium textiles and bedding was looking to establish a U.S. entity to sell to retailers, the company sought out a factor to provide the necessary credit coverage it needed to move forward. Unfamiliar with factoring and given the current state of the retail environment, the company turned to Rosenthal because of the firm’s deep experience in the textile and retail space.

The coronavirus-triggered downturn is pushing default rates higher and is also affecting the bankruptcy procedures used to address such credit defaults, according to Fitch Ratings. Several recent debtors have had their bankruptcy cases derailed as ability to access exit financing markets has been compromised. Similarly, decreased lender appetite for equitized debt as well as lack of third party interest in certain distressed assets has also disrupted the streamlined trend of pre-coronavirus Chapter 11s. Lender fears with respect to DIP facilities as well as an increased frequency of liquidation outcomes will likely further impede the goal of preserving value in U.S. bankruptcies during the crisis. Given that recoveries are tied to distributable value, a prolonged pandemic may contribute to lower creditor recoveries for debtors with disrupted processes.