In March, Otterbourg P.C. announced that James M. Cretella was named Chair of the firm’s Alternative and Specialty Finance Practice Group. A member of the firm’s Finance Department, Cretella represents lenders, factoring companies and other finance companies, as well as borrowers, in a variety of transactions.

Cretella has practiced at Otterbourg for his entire career and his experience encompasses financial transactions across a broad range of industries, including staffing, technology, transportation, oil and gas, and government contracting. His areas of focus include asset-based lending, supply chain finance, trade finance and specialty finance. He often acts as “outside in-house counsel” to finance companies and specialty lenders.

Cretella is a 2016 winner of the Secured Finance Network’s 40 Under 40 Awards.

Here he discusses his role and how the industry has evolved since he started.

The parent company of Webster Bank announced Monday it would merge with the parent company of Sterling National Bank in an all-stock deal worth about $10.3 billion.

The new company will locate its headquarters in Stamford — an agreement that marks the second blockbuster transaction this year for Connecticut’s banking sector.

Waterbury-based Webster Financial Corp.’s union with the Pearl River, N.Y.-based Sterling Bancorp would create a bank with about $63 billion in total assets, $52 billion in deposits and more than 200 branch locations in the northeast U.S. The merger is expected to close in the fourth quarter of 2021.

Siena Healthcare Finance recently led a $35.0MM asset-based line of credit for a home health company based in New York. The line will be used to support acquisitions and provide working capital for ongoing operations and growth initiatives.

The Company serves over 7,000 clients and provides care to people in their homes or communities, including personal care and companionship, skilled nursing, post-op care, pediatric care, specialized care, and therapy care in the five boroughs of New York City.

By now, most lenders and their counsel have heard about the February 16, 2021 decision of the U. S. District Court for the Southern District of New York in Citibank N.A. v. Brigade Capital Management, L.P, which held that certain lenders to Revlon who received payments by mistake from Citibank were in fact entitled to keep those payments. 

The magnitude of the funds transferred is just one of the eye-catching elements of the case.  On August 11, 2020, Citibank, which had been the agent for a syndicate of term lenders to Revlon, mistakenly transferred approximately $900 million to a group of the lenders.  According to Citibank, it had intended to send a much smaller amount, around $7 million, solely to cover an interest payment then due on the loans, but a problem with its loan processing system resulted in the overpayment.  Typically, you would expect lenders receiving the money by mistake just to return it—after all, you never know when you might be the one mistakenly sending the money.  And, in fact, a number of the lenders did just that—but one group, did not. 

CIT Group Inc. (NYSE: CIT) today announced that its Healthcare Finance business served as sole lead arranger on a $15.9 million financing for two medical office buildings in Littleton, Colorado.

The buildings, known as Arapahoe Medical Plaza I and II, are located on the campus of Littleton Adventist Hospital and comprise more than 98,700 square feet of space. The borrower is a venture led by an affiliate of Seavest Healthcare Properties.

(Editor’s Note: This is the beginning of a new interview series by Charlie Perer of SG Credit Partners.)

In this installment of our series of executive interviews, Charlie Perer sits with Ken Pardue to understand his plans to grow Triumph, the pace of change in the ABL business and state of the market, among other things.

eCapital Corp. (“eCapital” or “the Company”), a leading capital solutions provider for small and medium-sized businesses in North America and the UK, today announced it achieved substantial growth in 2020 and consolidated a total of eight acquired entities into a simplified corporate structure.    

In its 2020 growth surge eCapital provided its clientele access to over $4 billion in financing across 80 industries in the US and Canada, and also achieved an ~66.5% YoY increase in gross revenues and an ~56% YoY increase in portfolio size. 

Henry Sosa is director – account executive at CIT Northbridge Credit. Here he discusses SFNet's Diversity, Equality and Inclusiveness (DEI) Committee.

This article was originally published April 2021. Updated October 2022.

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.

The thing I love most about stoicism is the ability to combine its philosophy at work and home.  Most people, myself included, do not truly look at themselves dispassionately in either setting.  We are great, we are smart, we are everything someone should be and capable of everything; until we are not.  I experience this recently when I had to look deep inside myself and acknowledge that like all people, I am flawed and have weaknesses.  Most people overestimate their skills while failing to give themselves credit for what they are really great at.  When you truly understand who you are, you will be better at every aspect of your job.  What does this have to do with lending, you might ask; patience is another stoic virtue.

Encina Business Credit, LLC announced today that is has provided a $10 million senior secured revolving credit facility to a designer, marketer, and distributor of mid-priced and premium bicycles.

The revolving line of credit, which is collateralized by accounts receivable and inventory, will provide financing of the company’s working capital and capex requirements.

Wingspire Capital LLC (“Wingspire”) is pleased to provide a $46 million senior secured credit facility to Worldwise, Inc., a leading designer and supplier of pet products.

The transaction includes a $30 million revolving line of credit and a $16 million term loan to replace the previous credit facilities and enable Worldwise to meet the growing demand for cat and dog toys, beds, carriers and other pet products as the pet category continues to grow both in the U.S. and worldwide.

LSQ, a leading provider of technology-driven working capital solutions, announced that the company originated a $7.5 million AR facility, including a $3.1 million payoff to the first position lender, for a resurging marketing services firm.

Demand for the firm’s services is normalizing following a COVID-related revenue slump in 2020. It will now have sufficient capital to fulfill a growing number of orders and 2021 business development goals via this new, larger facility with LSQ.

At the 2004 Athens Olympics, American air-rifle shooter Matt Emmons, the reigning world champion in the 50-meter three-position event, held a seemingly insurmountable lead.  Going into his final shot, Emmons was in first place and needed only a mediocre score to win gold.  Emmons aimed, fired, and hit his target – the wrong target, one lane over.  He received no score for that shot and finished in eighth place.  

Emmons’ mistake illustrates the importance of aiming at the right target.  In April of 2020, amid the COVID-19 pandemic, the Federal Reserve and the Treasury Department announced the Main Street Loan Program (the “MSLP”), which was designed to provide emergency liquidity to small and mid-sized businesses.  Although well-intentioned, the MSLP, like Emmons, was aimed at the wrong target, and ultimately missed the mark.

Gordon Brothers, the global advisory, restructuring and investment firm, has named Joe Massaroni as Director, Business Development as Conrad Lauten retires.

Based in Atlanta, Massaroni will lead efforts to develop and maintain strong client relationships across the Southeast. Massaroni joins Gordon Brothers with decades of experience in secured finance. He’s worked at several lending institutions throughout his career and previously served as director and team leader responsible for managing key relationships and more than $4 billion of account commitments.