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There are few individuals more genuinely positive and upbeat than SFNet’s own Michele Ocejo. On her 30th anniversary of joining SFNet, I took the opportunity to sit down with our heralded but unassuming director of communications and discussed the importance of relationships, making an impact, and the joy she gets from sharing people’s stories.

Germany has a new restructuring law (StaRUG)

The new Company Stabilisation and Restructuring Act (StaRUG for short) entered into force on January 1, 2021. It is based on a European directive on the introduction of a pre-insolvency restructuring procedure, which was adopted in June 2019.

The intention is to facilitate early restructuring of companies and in any case before insolvency occurs. The idea is to avoid the disadvantages of insolvency - a possible loss of reputation and high costs for the affected company, disruption to trade and to safeguard employment.

Melinda Fricke Joins Pacific Western Bank as SVP, Business Development Officer for Asset-Based Lending in North Texas

Pacific Western Bank is pleased to announce that Melinda Fricke has joined the Bank as a Senior Vice President, Business Development Officer on its asset-based lending team. She will be located at the Bank’s Plano, Texas office. Melinda will expand the Bank’s efforts to deliver asset-based lending solutions to middle-market businesses in North Texas, Oklahoma, Arkansas and Louisiana.

CBL Continues its Growth Hiring a Trio of Industry Veterans

Context Business Lending, LLC ("CBL") a family office-backed leading, national asset-based lender, announced today a trio of experienced new hires with the addition of Rebecca Smith, Sherrill Hornett and Veronica Griffin. Each are industry veterans known for their customer-centric approaches to ABL and provide expertise critical to the continued growth of CBL's portfolio.

Vivint Smart Home Successfully Completes Refinancing Transactions

Vivint also announced that, concurrently with the Notes offering, the Issuer refinanced its existing credit facilities with (i) a new $1,350.0 million first lien senior secured term loan facility maturing in 2028 (the “New Senior Secured Term Loan Facility”) and (ii) a new $370.0 million senior secured revolving credit facility maturing in 2026 (the “New Senior Secured Revolving Credit Facility” and, together with the New Senior Secured Term Loan facility, the “New Senior Secured Credit Facilities”), with lenders party thereto and Bank of America, N.A. as a lender, administrative agent and collateral agent.

Gerber Finance Closes New Deal Under its Naturally Gerber Division

Gerber Finance, an eCapital company and leading finance partner for companies experiencing accelerated growth, today announced it closed a $6MM line of credit to natural products company, Puracy, a plant-based personal care and cleaning products company. The deal was managed under the Naturally Gerber Finance division, which works with companies within the fast-growing natural products space, from clean label, organic and non-GMO products, to sustainable design and packaging.

North Mill Capital Provides $15 Million Accounts Receivable Factoring Facility

North Mill Capital announced it provided a $15,000,000 accounts receivable factoring facility to provider of oral and personal hygiene products.

The funds were used to pay off the previous lender and provide additional working capital to support the Company's growth. NMC also entered into an inter-creditor agreement with a purchase order financing partner to help meet substantial near-term growth needs.

SFNet to Host “Navigating the End of LIBOR: Recent Developments and Market Updates” Webinar Tomorrow

SFNet will host a webinar tomorrow, May 21, from 12:00 p.m. – 1:00 p.m., EDT titled "Navigating the End of LIBOR: Recent Developments and Market Updates." This webinar is free for employees of SFNet member organizations and $95 for non SFNet members.

As we approach December 31, 2021, the financial markets are closer to the end of LIBOR for most currency and tenor settings. This webinar will provide important updates regarding LIBOR transition, including the extension of U.S. Dollar LIBOR for the dominant tenors to June 30, 2023, developments on SOFR and other overnight RFRs to replace IBOR rates and the emergence of certain “credit sensitive rates.” Panelists will also discuss recent developments impacting fallback provisions in documentation, including for business loans and derivatives, as well as the status of the New York State and Federal LIBOR discontinuation legislation.

Encina Capital Partners and Oaktree Affiliate Launch New Independent Lender Finance Platform

Encina Capital Partners, LLC (“Encina”) and an affiliate of certain funds managed by Oaktree Capital Management, L.P. (“Oaktree”) announced today that they have launched Encina Lender Finance, LLC (“ELF”), a new independent lender finance platform targeting commercial and consumer specialty finance companies in the U.S. and Canada.

Headquartered in Atlanta, ELF offers revolving lines of credit and term loans ranging in size from $10 - $40 million to specialty finance companies (sponsored and non-sponsored) across a wide range of asset classes including, but not limited to, asset-based lending, factoring, equipment leasing, floorplan financing, commercial real estate bridge lending, tax lien/deed financing, venture debt lending, SMB lending & merchant cash advance, middle-market private credit, charged-off debt buyers, rent-to-own consumer leasing, unsecured consumer lending and specialized student lending.

CIT Serves as Coordinating Lead Arranger for Approximately $200 Million Illinois Solar Financing

CIT Group Inc. (NYSE: CIT) today announced that its Power and Energy business served as coordinating lead arranger for approximately $200 million in financing for the 149-megawatt Big River solar power project in White County, Illinois.

The project sponsor is D. E. Shaw Renewable Investments (DESRI), a leading provider of cost-effective renewable energy across North America. DESRI is part of the D. E. Shaw Group, a global investment and technology development firm with more than $55 billion in investment capital.

SFNet Petitions SBA to Modify Interim Final Rule to Include Lender Eligibility Under PPP

SFNet, in alignment with the International Factoring Association and Equipment Leasing and Finance Association has petitioned the Small Business Administration and Department of the Treasury to amend its Interim Final Rule prohibiting financial services companies from participating in the Paycheck Protection Program under the CARES Act. In a letter to Secretary Mnuchin and Secretary Carranza, CEO Rich Gumbrecht vigorously reinforced SFNet’s prior calls for eligibility of “these non-depository lenders [who] extend economic lifelines to small businesses and are themselves now under financial stress.” SFNet has engaged outside resources and is continuing to work with organizations with aligned interests in conjunction with this and other matters related to the CARES Act and other relief efforts. We encourage everyone in our community to reach out to your representatives in Congress to support this imperative. For more information on how to do so, contact Michele Ocejo at mocejo@sfnet.com. Please click here to view the letter.

Quisitive Announces BMO Credit Facility and Retires Existing Credit Facility

Quisitive Technology Solutions Inc. (“Quisitive” or the “Company”) (TSXV: QUIS), a premier Microsoft Cloud Services and Payment Solutions Provider, is pleased to announce that it has paid out and retired its existing credit facility with a Canadian Schedule 1 Chartered Bank (the “Bank”) and has entered into a new credit facility with a syndicate led by Bank of Montreal (“BMO”) and including Desjardins Capital Markets ("DCM") pursuant to the terms of a loan agreement entered into between the Company, certain material subsidiaries of the Company, as guarantors, BMO, as administrative agent

SFNet’s International Lending Conference Reveals Reasons for Optimism

The industry worldwide was profoundly shaken by the events of 2020, and the two-day SFNet International Lending Conference provided attendees with a broad global view of economic recovery and a deep dive into the new normal of covenants, risk management and other areas of the secured finance business.

CARES Act Amendment Summary

On Tuesday, April 21, the Senate passed an amendment to the CARES Act that, among other things, would amend certain provisions of the Paycheck Protection Program (“PPP”), economic injury disaster loans, and emergency grants. The amendment is expected to pass the House later this week and the president has indicated he would sign it. In some ways, the amendment is as notable for some of the things it did not do – it did not create eligibility for financial services firms including community banks and secured lenders to borrow PPP loans, and it did not include rumored restrictions on larger borrower’s access to PPP – as it is for what it did do (increase funding and create a set-aside of PPP guarantees for PPP loans made by certain small and community development lenders).

Interview with Andrew Hettinger, Chief Investment Officer of SG Credit Partners, Inc.

Andrew joined with the goal of bringing his upmarket sophistication and breadth of experience to the lower middle market with the goal of helping SG Credit build a real credit platform. On Monday, May 24, SG Credit Partners announced the extension of its comprehensive credit platform exclusively serving lower middle market entrepreneurs and new website illustrating its expanded capabilities.

SFNet Annual Factoring Industry Survey Results

It is that time of year where we present the results of the Annual Factoring Industry Survey. Last year this commentary was written after the pandemic had set in, the country was in lockdown, historical results were completely disconnected from the unfolding reality of 2020. A year later, we look back and reflect on a surreal year. The factoring sector experienced unprecedented declines in volume (as did most secured lending), the highest level of write offs in 15 years and yet remained profitable, thus demonstrating the durability of the business model and its suitability as a financing tool for uncertain and turbulent times. Last year we noted that factoring is an “all-seasons competitor”, and that factoring would likely grow and thrive in the turbulent time to come. Looking back, we see that though the industry did not grow – in fact, it shrank – it did thrive and provided a valuable source financing to many businesses adversely impacted by the pandemic.

Crestmark Announces Launch of Healthcare Financial Services Division led by Ray Zilke

Crestmark is pleased to announce the launch of a new division offering medical accounts receivable financing to businesses in the healthcare industry. The newly created division will be led by Ray Zilke, first vice president, division manager. Zilke is based in Franklin, Tennessee, and will report to Steven Tomasello, Crestmark executive vice president. Zilke joined Crestmark in November 2005 as an account executive for the Midwest region at Crestmark’s Troy offices.

SFNet Presents Live Online Women in Secured Finance Conference: Where Women Rise

On June 16 & 23, SFNet’s live online Women in Secured Finance Conference will bring together women who are looking to grow professionally, share experiences, celebrate successes and advocate for each other.

In response to feedback the WISF Committee has received from previous WISF conferences, SFNet is reimagining this year's event format by partnering with Corporate Class, Inc. to offer attendees an interactive, customized workshop focused on developing executive presence along with career progression and leadership skills.

WISF Committee chair, Paula Currie of PNC Bank, said, “After the past year of remote living and working, we all could use a recharge to help us get back in the game. This year’s WISF conference, promises to do just that! The two-day interactive workshop is facilitated by experienced and renowned instructors who will help you build the skills, tools and confidence needed to realize your full potential and take your career to the next level.”

MidCap Business Credit Closes on a $15,000,000 Asset-based Credit Facility for Foundation Food Group, Inc.

MidCap Business Credit announced today they have closed on a $15,000,000 asset-based credit facility for Foundation Food Group, Inc., headquartered in Gainesville, GA. Through its state-of-the-industry processing facilities and production capabilities, Foundation Food Group provides the food industry with a variety of distinct, value-added poultry products with the highest quality standards.

Runway Growth Credit Fund Inc. Announces Expansion of KeyBank Revolving Credit Facility to $215M and Addition of New Lenders

Runway Growth Credit Fund Inc., a leading provider of growth loans to both venture and non-venture backed companies seeking an alternative to raising equity, announced that it has expanded and amended its credit agreement with KeyBank Specialty Finance Lending and other lenders. The Revolving Credit Facility provides for borrowings up to a maximum aggregate principal amount of $215M, with an accordion feature that enables Runway Growth to increase the aggregate commitments up to $300M.

Three new banks, MUFG Union Bank N.A. (co-documentation agent and lender), Bank of Hope (lender), and First Foundation Bank (lender), join KeyBank Specialty Finance Lending (administrative agent, syndication agent and lender) and CIBC Bank USA (co-documentation agent and lender) as parties to the Revolving Credit Facility in support of the Fund's growth.

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