Articles

The Women in Secured Finance e-newsletter's feature interview for this issue is with Melissa Mok, director of asset-based lending for Truist Securities. Mok joined Truist Securities in 2014.  Located in Texas, she is responsible for ABL originations of mid- and large-cap companies and is currently focused on the Financial Services, Energy and Industrial Services. TMT and TME industry verticals.

Sallyport is pleased to announce the provision of $7,000,000 in Accounts Receivable Finance to support a strategic acquisition in the entertainment services industry. Our new client, who successfully purchased the business - an existing Sallyport client, through an Article 9 Sale, chose us to ensure a seamless transition for existing debtors and customers. 

A trend towards superpriority debt exchanges that has begun appearing in out-of-court restructurings will continue to cause worry amongst minority debt holders and will likely result in continued litigation regarding the propriety of such exchanges. Examples of such troublesome exchanges began with an exchange conducted by Serta Simmons Bedding, LLC (“Serta”) and has continued with structurally similar transactions conducted by other companies, including Boardriders, Inc. (“Boardriders”) and TMK Hawk Parent, Corp. (“TriMark”).  

Tyler Layne and Lee Sands, attorneys at Waller Law cover three recent out-of-court debt transactions that have introduced a novel way for majority lenders and borrowers to improve their position at the detriment of the non-participating/minority lenders.

Richard Hawkins, Georgia Quenby and John Alderton provide an overview of the potential impacts of the New Moratorium and consider actions that Secured Lenders may wish to consider in preparation.

(Editor’s Note: SFNet will be hosting a Webinar on UK Insolvency Reform: What Secured Lenders Need to Know, which will include the authors and other experts on June 10 at 11 AM ET.)

The acquisitive Canadian music rights and services company – formerly known as Olé Entertainment – has announced that it has secured a new revolving credit facility of USD $400 million, plus a USD $150 million accordion. 

Truist Securities served as Left Lead Arranger of Anthem Entertainment’s new $400 million credit facility. Fifth Third Bank acted as Joint Lead Arranger, Union Bank acted as Syndication Agent and Regions Bank acted as Documentation Agent.

Other banks in the facility include Bank of America, Bank Hapoalim, CIT Bank, First Horizon Bank, HSBC Bank, Pacific Premier Bank, Pinnacle Bank and Scotiabank.

An Inventory and Purchase Order Lending Platform Targeting $500K to $10MM Opportunities

Black Olive Capital LLC (“Black Olive”) announced today the launch of its intelligent inventory and purchase order lending platform. Black Olive’s mission is to provide fast and easy inventory and purchase order financing to underserved small-to-medium sized businesses (SMBs) to help them unlock capital to grow and create jobs. Its financing solutions work for businesses nationwide, and in most industries.

LSQ, a leading provider of working capital finance and payments solutions, recently expanded its relationship with Wilson Creek Energy by originating a $15 million credit facility for the Pennsylvania-based metallurgical coal producer.

The company will use the additional capital to expand their operations and take on new clients.

As part of the solution, LSQ will also provide Wilson Creek with comprehensive accounts receivable and credit management to help better manage repayment risk and monitor customer health.

In March, Otterbourg P.C. announced that James M. Cretella was named Chair of the firm’s Alternative and Specialty Finance Practice Group. A member of the firm’s Finance Department, Cretella represents lenders, factoring companies and other finance companies, as well as borrowers, in a variety of transactions.

Cretella has practiced at Otterbourg for his entire career and his experience encompasses financial transactions across a broad range of industries, including staffing, technology, transportation, oil and gas, and government contracting. His areas of focus include asset-based lending, supply chain finance, trade finance and specialty finance. He often acts as “outside in-house counsel” to finance companies and specialty lenders.

Cretella is a 2016 winner of the Secured Finance Network’s 40 Under 40 Awards.

Here he discusses his role and how the industry has evolved since he started.

This is a new feature providing advice from WISF members to young professionals on a specific topic.  We need your input.  If you have a question you would like to see answered in this column, please submit to Michele Ocejo at mocejo@sfnet.com.

Dear WISF,

“Once you are established within a job and/or have already experienced some degree of internal growth, what additional steps would you recommend to continue career growth and development? Early in the career, there are multiple paths and opportunities an early career individual can pursue.  However, once in the mid-level, the continued growth opportunities may not be as bountiful.”

Otterbourg P.C. announced today that James M. Cretella has been named Chair of the firm’s Alternative and Specialty Finance Practice Group.

“His leadership qualities are equally impressive, and we are pleased that he will chair this expanding practice area.”

A member of the firm’s Finance Department, Mr. Cretella represents lenders, factoring companies and prominent financial institutions, as well as borrowers, in a variety of lending, factoring and corporate transactions.

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.

D.A. Davidson & Co. acted as financial advisor to Pacific Premier in the transaction and delivered a fairness opinion to the Board of Directors of Pacific Premier. Holland & Knight LLP served as legal counsel to Pacific Premier. Piper Sandler & Co. acted as financial advisor to Opus and delivered a fairness opinion to the Board of Directors of Opus. Sullivan & Cromwell LLP served as legal counsel to Opus.