Articles

A corporate scramble for cash and massive injections of liquidity by the Federal Reserve are reverberating across the balance sheets of U.S. commercial banks, with commercial and industrial loans registering the biggest week-over-week increase in more than 45 years.

C&I loans jumped 7.4%, or $176.17 billion, during the week ended March 18, according to seasonally adjusted data in the Fed's latest H.8 report on bank assets and liabilities. The data covers a week during which the crisis caused by the new coronavirus pandemic escalated rapidly. The Trump administration declared a national emergency March 13, and states placed increasing restrictions on public gatherings and business activity aimed at slowing the spread of the virus.

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

Pioneer has received a commitment for $75 million in debtor-in-possession ("DIP") financing from PNC Bank.  Upon Court approval, the new financing and cash generated from the Company's ongoing operations will be used to support the business during the reorganization process.  PNC has also committed to "roll" the DIP financing into an asset-based revolving credit facility at exit.

This article analyzes the conflict between federal and state marijuana laws, and its impact on the inability of state-legal marijuana businesses to obtain traditional and fundamental types of banking services from federally insured banks. This article is divided into three parts: (i) an explanation of the conflict of state and federal marijuana laws; (ii) the effect of the conflicting laws on the decision of banking institutions to provide services to state-licensed marijuana businesses; and (iii) congressional and judicial attempts to resolve the conflict between state and federal marijuana laws.

This is the first article in a three-part installment about the banking dilemma for state-licensed marijuana businesses in the United States.

(Editor’s Note: SFNet invites feedback on this issue. Please send comments to mocejo@sfnet.com.)

Recently, lenders have confronted proposals for modifications to EBITDA allowing management to add back losses arising from the economic impact of COVID-19.  This has become known as “EBITDAC” with the “C” representing the financial consequences of the coronavirus pandemic.  The Credit Roundtable has said:  “We believe EBITDA calculations include many hypothetical, highly subjective and potentially misleading adjustments.” 

The Credit Roundtable and others have urged the market to resist such proposals so as to protect the position of lenders. 

While the additional addbacks do not seem to have hit the asset-based lending market in the same way that it may have the worlds of leveraged loans and investment grade lending, it is a point for asset-based lenders to watch for, as sponsors draw on practices from other markets for application to asset-based facilities.

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.

From the second quarter Phoenix Management “Lending Climate in America” survey results reveals optimism in the U.S. economy with results for the near-term economy exceeding pre-pandemic predictions for the first time since the country shutdown due to COVID.

Since reaching an 11-year record low in Q2 2020, confidence in the near-term economy (next 6 months) has steadily climbed quarter over quarter to a 2.79 weighted average GPA in Q2 2021. Additionally, lender confidence in the U.S. economy in the long-term increased (by 7 percentage points) to 2.36 from the previous quarter’s results of 2.29.

Ares Commercial Finance announced today that it has provided a $30 million senior secured credit facility to Monolith Brands Group, Inc. (“the Company”).  The Company is a consumer products platform focused on acquiring omnichannel brands in niche product categories. Proceeds of the credit facility will be used to refinance existing indebtedness, provide ongoing working capital and help fund future acquisitions.

Encina Business Credit, LLC (“EBC”) announces the completion of a $75.0 million revolving credit facility for Horizon Global Corporation (“Horizon”). The facility will be used to replace an existing facility and will provide for ongoing working capital.

A recent Supreme Court case and related law changes in many states have resulted in significant new state sales tax obligations on many SaaS providers. It’s important to understand that these changes could result in new tax collection responsibilities on your business even in states where you have operated without them in the past.

Executives need to act quickly to make sure that their existing operations are in compliance with the new rules and that their systems can adapt as sales growth and law changes trigger additional obligations.  

Mountain Ridge Capital (“Mountain Ridge”) and Great Rock Capital (“Great Rock”), today jointly announced the closing of a senior secured credit facility for HOP Energy, LLC (“HOP”).  Founded in 1995 and headquartered in White Plains, NY, HOP Energy is a market-leading home services provider serving ~90,000 customers across two primary areas:  distribution of home heating oil and the installation and servicing of HVAC systems, heat pumps, and other critical non-discretionary home services.  HOP Energy is majority-owned by Delos Capital.

SFNet's Asset-Based Capital Conference was held virtually March 9-11 and offered professionals in the asset-based lending, alternative asset management, private debt, private equity, distressed debt and service providers to discuss the rapidly changing economic environment and its impacts on portfolios and business opportunities. With nearly 1300 attendees, the virtual event offered more content to a broader audience than in years’ past.

Many panelists were optimistic that there would be a stronger and quicker than expected recovery in 2021. While the COVID-19 pandemic was unexpected, another playbook has been written and the industry once again showed how to be resilient and adjust to “the new normal.”

“The SFNet ABCC conference did a great job of balancing both education and networking,” said attendee Nancy Kalman, senior business development officer, United Capital Funding. “The distinguished panels were very informative with what our industry looks like today. I met several new people in the networking rooms, along with setting up many individual meetings. I even received a lead from this that looks like we will be able to fund.”

TSL Express’ senior editor sat down with Tim Burniston, senior advisor, Regulatory Strategy for Wolters Kluwer Compliance Solutions to discuss Wolters Kluwer’s Regulatory & Risk Management Indicator survey.  Burniston joined Wolters Kluwer in December 2011 to lead Compliance Solutions’ Risk and Compliance consulting practice. Under his leadership, the practice grew significantly in scope and has built on an international reputation for excellence. In July 2017 he was named senior advisor for regulatory strategy. 

This year’s Regulatory & Risk Management Indicator Survey was conducted between August 4 and September 6, 2021, with 391 responses received. Respondents are primarily from bank management/executive and compliance roles with strong representation from those in lending functions.

Bridge Bank today announced it has extended a credit facility to YES Leasing, a financial services company that provides commercial equipment financing to companies and lessees of all credit backgrounds, specializing in helping those with challenging credit situations and unique circumstances. The Miami-based company, established in 1975, is a funding source for small businesses, entrepreneurs, vendors and equipment brokers throughout the country. The new credit facility will provide additional capacity to support the ongoing growth of YES Leasing's portfolio.

Gordon Brothers, the global advisory, restructuring, and investment firm, announced today the appointment of Kyle Shonak as Managing Director in the Retail division.  In his role as Managing Director, Shonak will have many responsibilities, including managing retail client engagements and working with the team to enhance the group’s retail growth strategy.