Haversine Funding, a leading financing provider to specialty finance companies, including asset-based lenders, factors, and equipment and inventory lenders, today announced the hiring of Gen Merritt-Parikh as President. Merritt-Parikh has more than 25 years of experience in asset-based lending and factoring and will be responsible for origination, underwriting, investment analysis and management and asset allocation strategy.

Two months ago we discussed the questions that lenders should be asking their borrowers as borrowers were beginning to finalize their June 30, 2020 results and report the initial impact of the Covid shutdown and the CARES Act program funds. With the end of August around the corner, the second quarter results and even July 2020 results are available.

It is time to consider updating and expanding discussions with borrowers looking toward the remainder of 2020.

The outline of questions is a guideline to facilitate a discussion focused on the thought processes the business is going through and the financial impact over the past few months and into the future. Open ended questions that encourage a discussion are the most important tools lenders can use to understand their borrowers and the impact of the Covid-19 situation.

CIT Group Inc. (NYSE: CIT) today announced that its Power and Energy unit served as sole lead arranger on a $162 million financing for the East Blackland Solar Project in Travis County, Texas.

The financing was arranged on behalf of Recurrent Energy LLC, a wholly owned subsidiary of Canadian Solar Inc. that functions as Canadian Solar’s U.S. project development arm. An active player in renewable energy development, Recurrent has already developed more than 2.4 gigawatts of solar projects and is planning another 5 gigawatts to come.

The Credit Agreement provides for a $5 million secured revolving credit facility and a $15 million secured term facility, which includes an uncommitted expansion feature that allows USAT to increase the Credit Facility by up to $5 million. The new facility replaces its existing debt facility, which it entered into on October 9, 2019.

CIT Group Inc. (NYSE: CIT) today announced that its Asset-Based Lending business, working in conjunction with its Sponsor Finance group, served as lead arranger on senior secured credit facility for von Drehle Corporation, a leading maker of high quality paper towel, tissue and dispensing products.

von Drehle, headquartered in Hickory, North Carolina, used the proceeds to refinance debt and for general corporate purposes.

A New Jersey bankruptcy judge said Wednesday that he would approve the nearly $89 million Chapter 11 sale of Sur La Table's assets to a private equity venture that bested a stalking horse offer and one other bidder during an auction earlier this month.

U.S. Bankruptcy Judge Michael A. Kaplan hailed the "tremendous" result of the Aug. 6 auction leading to an asset purchase agreement with SLT Lending JV, a joint venture between CSC Generation Holdings Inc. and Marquee Brands LLC. The deal will have SLT Lending buy the Seattle-based retailer's assets for $88.9 million and assume 50 store leases, which will save almost half of Sur La Table's brick-and-mortar presence.

 

BDO USA, LLP is pleased to announce that David Balderach and Robert Novak recently joined the firm’s business restructuring and turnaround services practice. Balderach, an industry veteran serving the lending and restructuring needs of energy and oilfield services businesses for the past 30 years, has joined BDO’s Houston office. Balderach brings his deep industry experience to BDO to advise companies, lenders and other investors on complex restructuring matters. Novak brings more than 20 years of experience in crisis management, operations improvement and debt restructuring to the firm’s Chicago office. 

Fortegra Financial Corporation (“Fortegra”), a leading specialty insurer and subsidiary of Tiptree Inc. (“Tiptree”), announced today that it closed on a $200 million Senior Secured Credit Facility from a syndicate of banks led by Fifth Third Bank, N.A. The entire amount is immediately available for letters of credit, with any remaining portion of the facility available for working capital.

Gibraltar prides itself on its ability to provide companies and their private equity sponsors with flexible financing and maximum liquidity, based on our ability to understand each business’ special situation. This enabled us recently to provide Texas-based Easy Gardener Products, Inc, a $20 million credit facility to help with a restructuring.

Easy Gardener designs, manufactures, and sells a broad range of consumer lawn and garden products. It sells its products under several well-known patented and trademark brands such as WeedBlock, Jobe's, Emerald Edge, Landmaster, Ross, and Jobe’s Organics. Its customer base includes longstanding relationships over a 20- to 30-year period with a robust network of large national home improvement and mass merchant retailers as well as local hardware stores and independent garden centers and nurseries.

CIT Group Inc. (NYSE: CIT) today announced that its Power and Energy business served as lead arranger for approximately $185 million in financing for a 66-megawatt portfolio of community solar projects.

The financing was arranged on behalf of Clearway Energy Group, one of the largest developers and operators of clean energy generation facilities in the U.S.

The portfolio consists of 19 separate projects totaling 66 megawatts of solar generation capacity located in Massachusetts, Illinois and New York State.

White Oak Commercial Finance, LLC (“White Oak”), an affiliate of White Oak Global Advisors, LLC is pleased to acknowledge the success of its valued client, StoreBound, a developer and distributor of housewares designed for healthy living. The fast-growing company has been with White Oak since 2015 and recently signed an investment agreement with multinational domestic equipment conglomerate, Groupe SEB, which aims to reinforce its presence in the US housewares market.

Headquartered in New York, StoreBound was recognized on INC’s List of Fastest Growing Businesses for four consecutive years and made Entrepreneur’s 360 List in 2019. 

Rosenthal & Rosenthal, Inc., the leading independent factoring, asset based lending and purchase order financing firm in the United States, today announced the completion of several non-recourse factoring deals with multiple furniture companies in Texas and North Carolina.

After a former Rosenthal client sold its furniture business to a well-known furniture brand in 2019, they reached out to Rosenthal to discuss funding for a new company. The client was seeking financing for several of its furniture businesses, both start-ups and established brands, all of which were experiencing cash flow issues as well as credit coverage concerns. Rosenthal was able to offer a non-recourse factoring solution to cover both. 

By Jeff Wright

With so much uncertainty in the economy during this unprecedented health crisis, planning and communication are critical to any company’s survival. Much is being said about preserving cash. And it’s because we all know cash will continue to be king even when businesses restart operations.

Context Business Lending (“CBL”), a leading family office-backed specialty finance company focused on asset-based lending (“ABL”), announced today new executive talent hires to support its rapid growth during this unprecedented time for the lending market and for small businesses. CBL has developed rapidly the past 24 months into an emerging market leader by investing in technology; data analytics; and human capital. The addition of these four senior executives was needed to support CBL’s exponential portfolio growth over the past two years, nearly quadrupling the size of its portfolio as more middle-market businesses look to asset-based lending as an alternative financing solution.

Experity Ventures, LLC (EV) is pleased to announce that it has closed on a structured credit facility for an initial $65 million and up to $100 million to support the growth plan for ProMed Capital. ProMed is a newly acquired portfolio company of Experity.

By Suzanne Konstance, Boaz Salik, and Archita Bhandari

The effects of the ongoing COVID-19 crisis are being felt in almost every financial sector. While current CARES Act stimulus programs offer strong government support for lending through these programs, these are a short-term opportunity. Overall, institutions that lend money are incurring increasingly higher levels of risk. The most obvious concern surrounds borrower default and lenders are facing the challenge of maximizing recovery on their existing portfolio as default rates are increasing and will continue to increase significantly in the near future. The spike in unemployment recalls how the Great Recession of 2008-09 caused a wave of bankruptcy cases, and it’s nearly certain that we will see an uptick in business and consumer bankruptcy filings. As a result, we see several large lenders continue to increase their credit loss reserves. There are ways to increase recoveries, however, and one is to systematically file UCCs on a portfolio as early as possible.

Restructuring Support Agreement Supported by More Than 75% of Senior Lenders; Files Voluntary Chapter 11 Petitions to Implement Financial Restructuring Plan

Men’s Wearhouse, Jos. A. Bank, Moores Clothing for Men and K&G Fashion Superstore Continuing to Serve Customers;

Company Continuing to Execute Against Previously Announced Plans to Reduce Headcount and Realign Store Footprint

Restructuring Supported by $500 Million in DIP ABL Financing from Existing Lenders; Expected to Convert to $400 Million in Exit ABL Financing to Support Emergence from Chapter 11

David Rains, Founder and CEO of Commercial Finance Consultants, passed away Wednesday following a courageous battle with COVID-19.  David was a longtime executive recruiter specializing in the factoring and asset-based lending industries.  In addition to his work in the industry, David’s work in prison entrepreneurship was a passion and helped many who had no one else championing their cause. David wrote an inspiring article about the program in the June 2019 issue of The Secured Lender.

In lieu of flowers, the family is requesting donations to the Prison Entrepreneurship Program at the following address:

 PO Box 83661
Richardson, TX 75083-6617

“David was highly respected, admired, and loved by all who knew him, and leaves a large legacy in our industry. David was a friend to all and was personally responsible for helping fill many, many positions in our industry. On behalf of the SFNet, we extend our sympathies to David’s wife, Billie, his sister, Debra Wilson - Zukonik, and the entire family.” Stewart Hayes, Managing Director, Wells Fargo Commercial Capital.

Moritt Hock & Hamroff recently reported on the impact of the COVID-19 pandemic on Uniform Commercial Code (“UCC”) Article 9 sales.  Now, a second significant decision on this issue has been published.  While our last alert concerned whether Article 9 sales may proceed in light of Governor Andrew Cuomo’s Executive Order precluding foreclosures (and reported a decision holding such Article 9 sales may proceed), this latest decision addresses the Article 9 “commercial reasonableness” standard in the present environment, holding that the sale terms  established by the lender in question were  not reasonable and staying the sale for at least thirty (30) days.

Citizens Commercial Banking announced today that it is lead left arranger of a $150 million asset-based revolver for Steve Madden (Nasdaq: SHOO), a leading designer and marketer of fashion-forward footwear, accessories and apparel for women, men and children.

“We appreciate the opportunity to work with the Citizens team whose strong personal commitment has been felt throughout this process,” said Edward Rosenfeld, Chief Executive Officer of Steve Madden. “Citizens bankers are experienced, trusted advisors and we greatly value the advice and results that the Citizens team delivers.”