Encina Lender Finance, LLC (ELF) announced today the promotion of Dan Avnir to Chief Commercial Officer.  Dan had previously served as Managing Director, Originations.

In Dan’s new role, he will continue to lead ELF’s origination strategy across its commercial and consumer verticals.  Dan will also lead ELF’s syndications strategy by managing the capital markets initiatives for various portfolio companies.

When documenting an ABL facility alongside a separate term loan, borrowers and financial sponsors increasingly request that the ABL credit agreement be drafted to essentially match material terms of the term loan agreement. This understandable desire for conformity often overshadows fundamental differences between ABL and term loan facilities and can create significant issues for ABL lenders. The goal from the ABL lender’s perspective should be to understand the tradeoffs involved and provide a level of functional conformity in principal terms, while maintaining customary availability-based metrics and liquidity protections of ABL loan documentation which are often absent or inadequately covered in term loan documentation.