New York State Senator James Sanders, Jr. (D-Queens, New York) has introduced a bill (S 6688) in the New York State Senate, which is presently pending before the Senate Committee on Rules.  The bill would require the licensing by the Superintendent of Banking of the New York State Banking Department (“Superintendent”) of persons or entities engaged in the business of making or soliciting commercial financing products to businesses located in New York State.

In a previous issue of TSL Express, we noted that, on January 2, 2019, the United States Senate gave its advice and consent to the United Nations Convention to the United Nations Assignment of Receivables in International Trade.  At the time, we noted that all that remained to complete the ratification process was for the White House to authorize the deposit of the Convention with the United Nations Treaty Office.  We are pleased to report that this step has finally occurred, 16 years after the Convention was signed by the United States. The SFNet is proud to have played a role in the drafting of the Convention and its adoption

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.

LBC Credit Partners ("LBC") provided senior secured credit facilities to support the refinancing of Sciens Building Solutions and the add-on acquisition of SmartWatch Security & Sound ("SmartWatch"). Sciens Building Solutions, a portfolio company of Huron Capital, was formed in 2016 to pursue a buy-and-build investment strategy in the fire detection and integrated solutions sector.

Wells Fargo Strategic Capital, a division of Wells Fargo & Company (NYSE: WFC), announced Dr. Rodney Altman as the newest managing director in its Healthcare Group, effective immediately. Altman, also a part-time physician at Stanford University Medical Center, is based in San Francisco and will work alongside the other members of the Healthcare Group, including John Ryan, Christine Guo, and Robert Rein.

The nation’s largest retailer of maternity wear has filed for Chapter 11 bankruptcy protection amid sagging sales, increased competition and changing customer tastes.

Destination Maternity listed $260 million in assets and $240 million in debts in its filing with the U.S. Bankruptcy Court in Delaware. The company, which in August announced it was reviewing strategic alternatives, including a possible sale, said the process has “already yielded indications of interest from several credible bidders.” 

Middle-market private companies in the Golub Capital Altman Index experienced approximate year-over-year earnings growth of 13.2% and revenue growth of 9.6% during the first two months of the third quarter of 2019. This compares to approximate year-over-year earnings growth of 12.5% and revenue growth of 10.3% in the second quarter of 2019.

Synovus Bank recently announced a new Specialty Finance Division, focused on providing debt capital financing and commercial banking solutions to fund companies operating in niche asset classes. The division includes a structured finance team and builds on the expertise of Global One Financial, the insurance premium finance lender acquired by Synovus in October of 2016. The division is led by Jonathan Rosen, who founded Global One in 2003 and continues to manage it as chief executive officer of the Specialty Finance Division at Synovus. Here, Jonathan Rosen discusses opportunities and growth late in the credit cycle.

Ares Commercial Finance announced that it has provided a senior secured revolving line of credit to Stevens Aerospace and Defense Systems LLC.  The company is owned by principals of the NTC Group, Inc.  Proceeds of the financing will be used to refinance the company’s existing credit facility and to provide ongoing working capital support.

People's United Bank, N.A., a subsidiary of People's United Financial, Inc. (NASDAQ: PBCT), announced its Healthcare Finance and Capital Markets Divisions provided a $57.5 million Credit Facility to ReNew REIT, a privately held healthcare real estate investment trust (REIT) formed in 2018 that focuses on independent living, assisted living and memory care communities.

The facility provides ReNew and its joint venture partner, Heritage Senior Living, with capital to acquire a senior living campus in Douglassville, PA.  

Fifth Third Business Capital, a division of Fifth Third Bank, announced it acted as sole lender and administrative agent on the funding of a new $21,500,000 senior credit facility to Conshohocken, Pennsylvania-based Spray Products Corporation and affiliates.=

In September, Octet announced that Bank of Queensland partnered with Octet on supply chain financing. As part of this relationship, Bank of Queensland will be providing a funding warehouse to Octet. The Octet-Bank of Queensland partnership is the first time Octet has aligned with a traditional lender in the business finance market. The deal sets a new standard for collaboration between the fintech and mainstream banking sectors.

Cambridge Savings Bank (CSB), one of the oldest and largest community banks in Massachusetts, announced the addition of John Bobbin, First Vice President, Senior Asset-Based Lending Officer, to join its Asset-Based Lending Team, which sits under CSB’s well-established Corporate Banking division.

In September, Siena Lending Group, ("Siena") announced the expansion of its national commercial lending capabilities with the launch of Siena Healthcare Finance. This new division of Siena will provide a broad range of asset-based lending solutions for small to mid-sized healthcare companies and other service providers.

Siena has hired Jennifer Sheasgreen to be president of Siena Healthcare Finance. Edward Kauffman will join the division as managing director in charge of new business originations. Sheasgreen and Kauffman have worked together since 2008 and have had a successful track record of building healthcare business units from the ground up.

Here, David Grende, president and CEO of Siena Lending Group, along with Sheasgreen and Kauffman discuss the new venture. 

Corporate entities often turn to asset-based lending (ABL) as a strategic way to fund acquisitions, reduce capital volatility inherent in cash flow structures, or simply to accelerate growth. Secured by company assets, this alternative path to cash flow financing has historically followed the same process: companies choose a lending institution based on the most attractive deal structure, accept its deal terms, and undergo a field exam and asset appraisal to determine the appropriate borrowing terms.