Wharton finance professor Itamar Drechsler discusses what led to the collapse of SVB and the questions it raises for banks, depositors, and regulators going forward.

Ares Commercial Finance announced today that it has provided a $31.2 million senior secured credit facility for a family-owned and operated manufacturer and distributor of high-quality home and garden equipment for professional and consumer use. The credit facility consists of an asset based revolving line of credit and M&E term loan.

Western Alliance Bancorp., Intrust Financial Corp., UMB Financial Corp., Zions Bancorp. and Comerica Inc. were the other lenders put on review by Moody’s. The credit rating company cited concerns over the lenders’ reliance on uninsured deposit funding and unrealized losses in their asset portfolios.

King Trade Capital is pleased to announce the completion of a $8 million purchase order finance facility for a popular growing sorbet brand.

King Trade Capital was introduced to the client by an Investment Bank looking for a finance solution to replace a previous lender that was not capable of keeping up with the company’s growth.

Signature Bank, New York, NY, was closed today by the New York State Department of Financial Services, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect depositors, the FDIC transferred all the deposits and substantially all of the assets of Signature Bank to Signature Bridge Bank, N.A., a full-service bank that will be operated by the FDIC as it markets the institution to potential bidders.

ePlus inc. (NASDAQ NGS: PLUS – news) a leading provider of technology and financing solutions, today announced that its wholly-owned subsidiaries ePlus Technology, inc., ePlus Technology Services, inc. and SLAIT Consulting, LLC (collectively, the "Borrowers") recently entered into an amendment to their credit agreement with their lenders (the "Lenders") for which Wells Fargo Commercial Distribution Finance Corporation ("WFCDF") acts as administrative agent. 

Last Fall, Webster Bank announced that Abby Parsonnet was named executive managing director, head of Asset Based Lending (ABL) for Webster Bank. In her role, she oversees the nationwide Asset-Based Lending and Commercial Services teams at Webster, which also includes staffing solutions and factoring. She reports to Chris Motl, president of Commercial Banking.

As head of ABL, Parsonnet is responsible for continuing Webster’s strong tradition of excellence in delivering customized working capital solutions to middle- market clients and sponsors.  She will lead a team of bankers based in strategic markets nationwide.

Here, Abby discusses her career, goals in her new role, how the merger with Sterling National Bank helped to expand Webster’s offerings, particularly in ABL and factoring, and more.

SFNet continues to assess the effects of the SVB fallout and will provide relevant information and resources as events unfold. 

To support American businesses and households, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors. This action will bolster the capacity of the banking system to safeguard deposits and ensure the ongoing provision of money and credit to the economy.

Cahill Gordon & Reindel LLP announced today that Joel Moss has joined the firm as a partner in its Bankruptcy & Restructuring practice.

Mr. Moss’s practice focuses on representing a broad range of clients including financial institutions, hedge funds, direct lenders and ad hoc secured lender and noteholder groups in complex in-court and out-of-court restructurings, workouts, rescue financings, liability management transactions and DIP and exit financings. He also has substantial experience advising financial institutions and hedge funds in connection with the mitigation of risks associated with derivative, futures and securitization transactions.

Socure, the leading provider of digital identity verification and fraud solutions, today announced it has entered into a $95 million, three-year credit facility with J.P. Morgan, Silicon Valley Bank, and KeyBanc Capital Markets. This line of credit will further strengthen the company's financial position as it continues on its mission to be the first and only solution provider to verify 100% of good identities in real-time and completely eliminate identity fraud on the internet.

In the coming months, be on the lookout for an increase in seller-financed mergers and acquisitions activity. 

For the last several years, the small and midsized business segment was experiencing increasing purchase price multiples fueled by low interest rates and the available credit made possible by banks’ confidence in a robust economy. Owners of solid businesses – motivated by a desire to close deals before anticipated possible changes in the current tax code – staged auctions and entertained multiple competing all-cash offers. Buyers took advantage of easy credit and low rates to deploy a combination of debt and equity, with debt on the portion of a deal supported by commercial real estate often exceeding 70%. 

On International Women’s Day, SFNet president and former CEO of Gerber Finance and eCapital ABL, Jennifer Palmer, is announcing the formation of JPalmer Collective. The asset-based lending firm will provide customized financing solutions with white-glove, consultative services designed to help businesses grow sustainably and founders to retain their equity.

The company will specialize in high-growth businesses that do not fit traditional lenders' criteria, including women-led companies and consumer brands focused on conscious consumers, sustainability and inclusivity.

GA Telesis, LLC ("GAT") and Tokyo Century Corporation ("TC") announce the launch of its new joint venture lending platform, HALO AirFinance ("HALO"). HALO will serve as the exclusive debt origination channel for GAT and TC, with a focus on secured direct lending to airlines, lessors, and investors, covering the collateral spectrum from new to mid-life aircraft.

Mignon Winston Joins as Vice President

Great Rock Capital, an asset-focused commercial finance company specializing in middle market lending, today announced Mignon Winston has joined the firm as a Vice President of Underwriting. She will be based in Connecticut and serve as one of the company’s underwriting team leaders.

David A. Spehar, a 30-year appraisal and disposition veteran whose work has encompassed over 350 companies and thousands of retail stores across North America, has joined Tiger Group as associate director of Field Operations.

Spehar’s new role includes overseeing Tiger’s data-driven approach to marketing and selling furniture, fixtures and equipment (FF&E) during liquidations and strategic store-closings, as well as conducting field evaluations of retail stores and distribution centers on behalf of Tiger’s valuation practice. He reports to Tiger Group Executive Managing Director Arnold L. Jacobs.

Oaktree Capital Management, L.P. has announced the launch of private credit-focused Oaktree Lending Partners and its related vehicles (OLP). OLP is targeting $10 billion in equity commitments from institutional investors.

OLP will seek to originate senior secured loans of $500 million or more to private equity-owned U.S. companies, typically with over $100 million in EBITDA. 

Heelstone Renewable Energy, LLC (“Heelstone”) is pleased to announce that in the fourth quarter of 2022 it closed on a $175 million credit facility with BlackRock Alternatives (“BlackRock”), through a fund managed by its Infrastructure Debt business, to fund the initial construction and development of utility-scale solar and battery storage projects. 

MidCap Financial, a leading commercial finance company focused on middle market transactions, is pleased to announce that it has completed an acquisition of a significant portion of Sector Financial’s managed Healthcare Asset Based Lending portfolio, totaling over $500mm in commitments and over $300mm in funded assets.

Eclipse Business Capital LLC (“EBC”) announced that it has provided a $135 million senior secured revolving credit facility an e-commerce retailer.

The credit facility is secured by accounts receivable and inventory with the proceeds being used to refinance the existing line of credit. EBC’s demonstrated track record of executing quickly, coupled with its industry expertise, provided the borrower confidence that its business needs would be met.

Monroe Capital LLC (“Monroe”), a premier boutique asset management firm specializing in private credit markets across various strategies, today announced it has entered into a definitive agreement to acquire Horizon Technology Finance Management LLC, (“Horizon”) (the “Acquisition” or “Transaction”). Horizon is the investment advisor to Horizon Technology Finance Corporation (NASDAQ: HRZN).