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Secured Finance Executives Discuss the Impact of Coronavirus

Jennifer Palmer, CEO, Gerber Finance, Paul Schuldiner, executive vice president and purchase order finance division manager, Rosenthal & Rosenthal and Ken Wengrod, co-founder/president, FTC Commercial Corp. discuss the impact of Coronavirus.

Blue Owl Capital Announces Agreement to Acquire Wellfleet Credit Partners from Littlejohn & Co.

Blue Owl Capital Inc. ("Blue Owl") (NYSE: OWL) announced today it has entered into a definitive purchase agreement to acquire Wellfleet Credit Partners LLC ("Wellfleet") from affiliates of Littlejohn & Co., LLC ("Littlejohn"). The transaction is expected to close in March 2022 and is subject to customary closing conditions. The purchase price consists of upfront and earnout payments, which will be primarily funded by cash. Upon closing, Wellfleet will become part of Blue Owl's Owl Rock division, reporting into Craig Packer, Co-Founder and a Senior Managing Director of Blue Owl.

Architect Capital Launches With $100 Million to Provide Asset-based Financing to Technology Companies in the U.S. and Latin America

Architect Capital, an asset-based lender to early-stage technology businesses, announced that it has launched with over $100 million to provide non-dilutive or less-dilutive financing solutions to high-growth and technology-enabled businesses. With a focus on FinTech, E-Commerce, and SaaS companies in Latin America and the United States, Architect Capital's mission is to support innovative founders across the globe by structuring and delivering unique asset-based products complementary to traditional venture capital.

Gail K. Bernstein Reflects on Her Successful Career in ABL

Gail K. Bernstein was executive vice president, national investment manager for PNC Business Credit, located in Los Angeles, CA. Prior to September 2013, she was the marketing manager of PNC Business Credit-Western Region, a de novo office that she opened in 1998. Besides her extensive experience in ABL, her career encompasses a specialization in international lending and investment management. She has traveled extensively in Latin America and is bilingual in English and Spanish.

After 20 years with PNC, Bernstein retired on August 30, 2019.

Santander Strengthens Senior Leadership in Commercial Banking

Santander Bank, N.A. today announced the appointments of Taryn Phelan as Commercial Banking Chief Experience Officer and Michael McDonough as Head of Trade & Working Capital Solutions. Phelan will report to Joe Abruzzo, Head of Commercial Banking, and McDonough will report to Ken Deveaux, Head of Transaction Banking.

“Taryn and Michael are great examples of our investment in top talent to drive, develop and execute our Commercial Banking growth strategy,” said Abruzzo. “They bring a wealth of leadership, experience and energy with them to Santander, and I’m excited to have them on our dynamic team.”

Citizens Expands Capabilities by Adding Insurance Industry Banking Expertise

Citizens Commercial Banking has hired two senior bankers as it increases its commitment to its financial institution and insurance industry clients. Peter Wesemeier, based in Atlanta, and Ben Los, based in Chicago, have joined Citizens as managing directors and will work with Boston-based David Bosselait as financial and strategic partners to Citizens’ existing and new financial institution and insurance industry clients.

MidFirst Business Credit Announces the Addition of new Senior Vice President, Business Development Officer

MidFirst Business Credit, Inc., is pleased to announce the addition of William “Bill” Bogatay as senior vice president, business development officer. Based out of Dallas, Texas, Bill will assist with originating senior secured debt facilities for companies throughout the Southwest, including, Texas, Oklahoma, Louisiana, Arkansas and Kansas.

Ares Management Corporation Closes $3.7 Billion Pathfinder Alternative Credit Fund

Ares Management Corporation (“Ares”) (NYSE: ARES), a leading global alternative investment manager, announced today the final closing of its Ares Pathfinder Fund, L.P. (together with its parallel vehicles, “Pathfinder” or the “Fund”). With $3.7 billion in total commitments closed, the Fund was significantly oversubscribed at its hard cap and exceeded its original target of $2.0 billion.

Helios Technologies Upsizes Credit Facilities to $900M

Helios’s senior secured credit agreement was provided by a syndicate led by PNC Bank. The five-year agreement amends the Company’s previous credit agreement and consists of a $400 million revolving credit facility, a $200 million term loan and, subject to new or existing lenders agreeing to participate in the increase and other customary conditions, a $300 million accordion feature. These credit facilities provide Helios with a significant increase in its borrowing capacity with an improved structure and attractive interest rate options.

KKR Boosts Private Credit Team as Its Asset-Based Lending Grows

KKR & Co. expanded its global private credit team with two hires to further its reach within asset-based financing and secured lending.

The firm tapped Giacomo Picco and Stephanie Yeh as managing directors. Picco will lead a new effort focused on so-called receivables and inventory-backed debt, while Yeh will co-lead sourcing of ABF investment opportunities in the U.S., according to a statement viewed by Bloomberg. Both will be based in New York.

A Viable Alternative to the Bankruptcy Process for Struggling Companies

It is an unfortunate reality that, as the economic repercussions of the COVID-19 pandemic continue to be felt, an increasing number of businesses will face financial and operational distress. For many of these businesses, bankruptcy may be an appropriate or necessary path to restructure their balance sheets. However, it is not the only option and lenders must keep that in mind as companies increasingly default under their credit agreements.

Bankruptcy can be an extremely useful tool for restructuring a company, but can also be expensive, lengthy and frustrating. That’s why more lenders are considering a Strict Foreclosure process executed under Article 9 of the Uniform Commercial Code. This strategy can offer many of the same benefits as a bankruptcy filing while requiring less time and fewer financial resources. In order to properly assess the benefits and risks of this approach, lenders must have a firm grasp on what it entails, when best to use it, as well as how to manage people throughout the process.

CIT Northbridge Serves as Sole Lead Arranger on $20 Million Secured Credit Facility for Laurel Grocery

CIT Group Inc. (NYSE: CIT) today announced that CIT Northbridge Credit, as advised by CIT Asset Management LLC, served as sole lead arranger on a $20 million senior secured credit facility for Laurel Grocery Company LLC.

Headquartered in London, Kentucky, Laurel Grocery is a wholesale distributor of grocery products to more than 160 independent grocers in Georgia, Indiana, Kentucky, Ohio, Tennessee and West Virginia. The company, founded in 1922, also provides a range of business services, including accounting, insurance, merchandising, advertising and third-party warehousing and logistics.

Proceeds will be used to repay debt, finance growth initiatives and support ongoing operations.

CIT Serves as Co-Lead Arranger on $165 Million Financing for iEnergizer

CIT Group Inc. (NYSE: CIT) today announced that its Technology, Media and Telecommunications business served as co-lead arranger and joint bookrunner for a $165 million financing on behalf of iEnergizer, a leading technology services and media solutions company.

The financing, which includes a $150 million term loan and a $15 million revolving credit facility, will be used to refinance existing debt and fund a dividend to shareholders.

Founded in 2000, iEnergizer provides technology-enabled services to clients across a wide range of industries, including gaming, healthcare, publishing, travel, and financial services.

White Oak Healthcare Finance Provides $75MM Credit Facility to Advanced Recovery Systems

White Oak Healthcare Finance, LLC (“White Oak”) announced today that it acted as sole lender and administrative agent of a senior credit facility to support Advanced Recovery Systems, LLC (“ARS” or the "Company"), a Goldman Sachs Asset Management portfolio company. ARS provides inpatient and outpatient treatment services for patients with addiction, substance abuse and behavioral health disorders.

Eastern Bankshares, Inc. and Century Bancorp, Inc. Enter Into Definitive Agreement To Merge

Eastern Bankshares, Inc. (“Eastern”) (Nasdaq Global Select Market: EBC), the stock holding company for Eastern Bank, and Century Bancorp, Inc. (Nasdaq: CNBKA) (“Century”), the stock holding company for Century Bank and Trust Company (“Century Bank”), today jointly announced they have entered into a definitive all-cash merger agreement with an aggregate transaction value of $642 million. This in-market transaction comes less than six months after Eastern’s initial public offering that raised approximately $1.7 billion in equity capital.

J.P. Morgan Securities LLC served as financial advisor and Nutter McClennen & Fish LLP provided legal counsel to Eastern. Piper Sandler & Co. served as financial advisor and Goodwin Procter LLP provided legal counsel to Century.

What Happened in 2020? The New Paradigm for Asset-Based Lenders in a Chapter 11 Case and What Should (Can) They Do About It?

To say a lot happened in 2020 doesn’t begin to capture what the year brought. In the economy, this included a significant increase in Chapter 11 filings for larger businesses from filings in 2019, particularly in retail. And for asset-based lenders it included a significant shift in their role in the larger bankruptcies. Asset-based lenders faced real challenges how to best protect their position and enhance the likelihood of a successful outcome. Confronted with a landscape that requires a new map to navigate, we look at what happened, how it happened and, most importantly, what should (or can) the asset-based lender do about it?

Wingspire Capital Hires John Olsen as Director on Portfolio Management Team

Wingspire Capital, a leading specialty finance firm focused on the middle market, is pleased to announce the hiring of John Olsen as a Director on its portfolio management team. He will manage a portfolio of middle market borrower relationships from Wingspire’s Atlanta office.

SFNet Petitions SBA to Modify Interim Final Rule to Include Lender Eligibility Under PPP

SFNet, in alignment with the International Factoring Association and Equipment Leasing and Finance Association has petitioned the Small Business Administration and Department of the Treasury to amend its Interim Final Rule prohibiting financial services companies from participating in the Paycheck Protection Program under the CARES Act. In a letter to Secretary Mnuchin and Secretary Carranza, CEO Rich Gumbrecht vigorously reinforced SFNet’s prior calls for eligibility of “these non-depository lenders [who] extend economic lifelines to small businesses and are themselves now under financial stress.” SFNet has engaged outside resources and is continuing to work with organizations with aligned interests in conjunction with this and other matters related to the CARES Act and other relief efforts. We encourage everyone in our community to reach out to your representatives in Congress to support this imperative. For more information on how to do so, contact Michele Ocejo at mocejo@sfnet.com. Please click here to view the letter.

Runway Growth Credit Fund Inc. Announces Expansion of KeyBank Revolving Credit Facility to $215M and Addition of New Lenders

Runway Growth Credit Fund Inc., a leading provider of growth loans to both venture and non-venture backed companies seeking an alternative to raising equity, announced that it has expanded and amended its credit agreement with KeyBank Specialty Finance Lending and other lenders. The Revolving Credit Facility provides for borrowings up to a maximum aggregate principal amount of $215M, with an accordion feature that enables Runway Growth to increase the aggregate commitments up to $300M.

Three new banks, MUFG Union Bank N.A. (co-documentation agent and lender), Bank of Hope (lender), and First Foundation Bank (lender), join KeyBank Specialty Finance Lending (administrative agent, syndication agent and lender) and CIBC Bank USA (co-documentation agent and lender) as parties to the Revolving Credit Facility in support of the Fund's growth.

The Road to Recovery: ABCC Panel Looks Ahead

At the 2021 annual SFNet Asset Based Capital Conference (ABCC), financial experts from four top companies gathered to discuss the economic and political outlook for the year ahead. The panel consisted of:

Jeffery Wacker – head of U.S. ABL Originations, TD Bank Group
David Mericle – chief U.S. economist, Goldman Sachs
Lyuba Petrova – head of U.S. Leveraged Finance, Fitch Rating
David Chmiel – managing director, Global Torchlight

Some key themes emerged throughout the panel discussion:

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