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  • Patrick Trammell-150x150 Managing C&I Risk in a Time of Pandemic
    Commercial lenders will face many new and unique challenges over the coming months as the full effects of the coronavirus pandemic are felt throughout the economy.  For commercial customers cash flow, liquidity, and credit tightening dramatically across industries is the new normal.  In these uncertain times, no segment of the bank commercial portfolio is under as much short- and long-term risk as the commercial and industrial (C&I) line of credit segment.
  • Small Bank Loan Growth Jumps as PPP Funding Ramps Up

    Commercial loan growth reaccelerated across much of the U.S. banking industry as lenders began to fund federally backed small business loans and prepared to start processing a second round of applications under the coronavirus relief program.

    Excluding the 25 largest institutions by assets, commercial and industrial loans increased 6.3% during the week ended April 15, according to seasonally adjusted data in the Federal Reserve's most recent H.8 report on commercial banks. That represents a huge jump from growth rates of 0.6% to 0.8% in the preceding two weeks, and leapfrogs growth of 2.1% to 2.3% during two weeks in March when corporate draws against bank credit lines were particularly heavy.

  • Charlie Perer Aftermath
    Aftermath means the consequences or aftereffects of a significant unpleasant event, like Covid-19. The financial system is going to experience this first-hand. No firm, whether it be bank or non-bank, will be left unscathed. The author is purposely writing this article now in order to predict that one of the many untold stories will be that the nation’s biggest banks were expecting the unexpected as it pertains to their middle-market C&I and ABL portfolios.  Clearly, no bank in the country could have imagined a complete shutdown based on a virus, but what they could and did imagine was a severe depression irrespective of the cause.  Not only were they expecting, but they were prepared in unexpected ways.  The same cannot be said for certain community and regional banks and BDCs, which might not have had the resources, scale or wherewithal to prepare.
  • 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.

     

  • Reaching the Top: C-Suite Women in Secured Finance Roundtable

    What does it take to break the proverbial glass ceiling in secured finance? What does the journey to the “top” look like for women in financial services? We interviewed four C-Suite women and here is what they had to say. The women we spoke with are Meredith Carter, president and CEO, Context Business Lending; Miin Chen, COO, Siena Lending Group; Deborah Monosson, president & CEO, Boston Financial & Equity Corporation; and Jennifer Yount, partner, Paul Hastings LLP.

  • Myra Thomas Women Leaders Talk About Advancing in the Ranks

    Secured Finance executives and an executive recruiter discuss how the industry can attract and retain more women.

  • StaciRosche_150x150 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).
  • Henry Schein Enhances Liquidity Position With New Credit Facility Totaling $700 Million

    Henry Schein, Inc. (Nasdaq: HSIC), the world’s largest provider of health care solutions to office-based dental and medical professionals, today announced that it has closed on a new credit facility totaling $700 million, with JP Morgan Securities LLC and U.S. Bank NA serving as Joint Lead Arrangers.

    The new facility represents $700 million in committed financing that increases and replaces $200 million in uncommitted financing from the same lenders. The Company’s liquidity position now totals $1.7 billion.

  • Transformational Change and Crisis Costs Weigh Heavily on Both Sides in Stressed and Distressed Retail/Supplier Relationships
    Ben Nortman and Ian Fredericks of ReStore Capital examine the financial burden that consumer mandated transformation and the current crisis are imposing on both retailers and their suppliers, and how innovative financial solutions can be leveraged by both to help ensure successful outcomes in stressed and distressed environments. 
  • Second Avenue Capital Partners Provides a $17 Million Senior Secured Credit Facility to Crown & Caliber

    Second Avenue Capital Partners, LLC (“SACP”) (www.secondavecp.com) announced it has closed on a $17,000,000 senior secured credit facility to Crown & Caliber, an online marketplace leader in authenticated pre-owned luxury watches. The credit facility will be used to support growth opportunities and provide additional working capital.

    Founded in 2013 in Atlanta, GA, Crown & Caliber has created an accessible, transparent, and trusted e-commerce platform to buy and sell pre-owned watches. 
  • JenniferPalmer_TSLSpreadPhoto Interview with Jennifer Palmer

    In January, Gerber Finance announced the completion of its CEO succession strategy, naming longtime president Jennifer Palmer as CEO with Founder Gerald Joseph transitioning to his new role as strategic advisor and chairman of the board.

  • Wingspire Capital Provides $40.0 Million Senior Secured Loan to Save-A-Lot
    Wingspire Capital Holdings (“Wingspire”) today announced that it has provided a $40.0 million senior secured loan to Moran Foods, LLC d/b/a Save-A-Lot. (“Sav-A-Lot”). Wingspire’s loan was part of a $150.0 million revolving line of credit among a group of three lenders.  Loan proceeds were used to repay existing debt and support Save-A-Lot’s operations and acceleration of its transformation plan.
  • Gumbrecht2 SFNet Responds to Main Street Lending Program Guidance

    In a letter to Treasury Secretary Steven T. Mnuchin and Federal Reserve Chairman Jerome H. Powell, SFNet CEO Rich Gumbrecht provided recommendations to help facilitate the objectives of the newly introduced Main Street Expanded and New Loan Facilities as set out by the Federal Reserve. Given that many of the potentially eligible borrowers who would benefit from the Programs have existing collateralized debt, SFNet reasoned that it is critical that the Programs specifically address the relationship between existing secured loans and the additional loans provided for in the Programs. The inability to do so would “limit access to this critical source of capital, imperiling jobs and jeopardizing economic recovery”. The benefit of clarifying and amending these protections would “mitigate the current economic hardship being experienced by [Main Street companies] and bolster this critical part of the capital supply chain”. SFNet further positioned that non-depository lenders should be eligible lenders to maximize the benefit of the Programs.

    Click here to view the letter.

  • Gordon Brothers Names Steven Holstein Head of Business Development

    Gordon Brothers, the global advisory, restructuring, and investment firm, announced today the appointment of Steven Holstein as Head of Business Development.

    As Head of Business Development, Holstein will be responsible for building, driving, and leading global business development, including research, sales, and marketing strategies.

  • Live Nation Announces Credit Agreement Amendment, Additional Revolving Credit Facility And Cost Reduction Program

    - 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

  • Gumbrecht2 New Message from SFNet CEO - Crisis and Renewal

    I hope you had a safe and peaceful weekend as many of us celebrated the Passover and Easter holidays and found some respite from the crisis in our friends, families and communities.  Events continue to unfold at a rapid pace, and I’d like to bring you up to speed on what our association is doing to analyze and share information and influence outcomes to support our collective interests.  Our priority remains to attend to the well-being of our SFNet community and to fulfill our mission of putting capital to work. 

    On the legislative and regulatory front, we have focused our Advocacy resources on three imperatives.

    • Leveraging the CARES Act. Last week an additional $250B was pledged to the already oversubscribed Paycheck Protection Program. SFNet and our volunteers, in alignment with the AFA, ELFA, ASEA and other trade associations, are petitioning legislators to simplify execution challenges, modify affiliation rules and extend eligibility to financial services companies under PPP. Our positions on these matters can be found at SFNet.com

     

  • David Morse photo CARES Act Frequently Asked Questions

    On March 27, 2020, Congress approved the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”).  The CARES Act includes extensive provisions to address the current public health crisis, including, among other things, $349 billion of commitments for general business loans under Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) through June 30, 2020 under Title I of the CARES Act, titled “Keeping American Workers Paid and Employed Act,”  which sets out the terms for the “Paycheck Protection Program.”

    The Paycheck Protection Program has been of particular interest to members of Secured Finance Network because it provides potential interim financing for small businesses that are typical borrowers from many member lenders.

    Following up on the description in the articles above here are answers to some frequently asked questions from members of the Secured Finance Network.

     

  • SFNet’s Annual & Q4 Asset-Based Lending Surveys Reflect Continuing Growth
    In perhaps the last snapshot of the secured finance industry before the onset of the COVID-19 pandemic, the fourth quarter and annual SFNet Asset-Based Lending Surveys reflect that banks and independent lenders reported that asset-based lending to U.S. businesses increased steadily and credit quality remained strong. However, the unfolding COVID-19 pandemic that began in the first quarter of 2020 is having an unprecedented impact on financial markets worldwide.
  • Gordon Brothers Names Laurence Sax as Chief Operating Officer

    Gordon Brothers, the global advisory, restructuring, and investment firm, announced today the appointment of Laurence Sax as Chief Operating Officer.

    As COO, Sax will lead Gordon Brothers’ finance, accounting, treasury, financial planning, corporate development, and information technology functions.  He brings over 30 years of operating, finance, and turnaround and restructuring experience to the firm.

  • CIT's Financial Support Helps Designers Create Protective Masks with Style

    U.S. health officials say Americans should wear masks in public to combat the coronavirus. Financial support by CIT Group Inc. (NYSE: CIT) is helping two California apparel makers create masks that protect with style. Sanctuary Clothing and Karen Kane, both Los Angeles-based clients of CIT's Commercial Services business, have rolled out stylish face masks that can be worn by consumers to provide another layer of protection against COVID-19 transmission when out in public. Both clothing companies are using proceeds from sales of fashion masks to help finance donations of masks to hospitals and other healthcare facilities.