August 12, 2014

CFA's International Lending Conference Addresses Cross-Border Financing Needs of "Rapidly Globalizing Middle Market"

By Michele Ocejo

CFA held its International Lending Conference on May 6-8, 2014, bringing together major players in asset-based lending from the U.S., UK, Continental Europe and around the globe for a comprehensive, two-day summit on cross-border asset-based lending. Bank of America hosted the event at its offices in London.

Attendees appreciated the wide range of informative panel topics and the unique networking opportunities offered by the Conference.

Factoring Provides Flexibility and Expertise to the Apparel Sector; CIT Executive Insights Offers Outlook on "The State of the Apparel Industry"

TriplePoint Venture Growth BDC Corp. Announces $50 Million Increase in Credit Facility Commitments

Hibernia REIT plc Enters Into a €100 Million Three-year Revolving Credit Facility With Bank of Ireland Corporate Banking, Secured Against a Corporate Level Debenture

Staffing 360 Solutions Increases Credit Facility Up to $15 Million With Wells Fargo Bank; Amended Credit Facility Provides Additional Working Capital for Certain Subsidiaries of Staffing 360 Solutions

Charter Said to Drop $4.2 Billion Loan as Buyers Flee

1836 Capital, LLC Completes Debt Placement on a $15 Million Acquisition

King Trade Capital (KTC) is pleased to announce the recent funding of a $1.5 million purchase order finance commitment for a European-based importer of toys and games.

After opening a subsidiary in the U.S. the importer started landing a series of increasingly large orders from several US based mass merchants, This success pushed the European parent company to seek to establish stand-alone financing for its U.S. subsidiary so that their working capital in Europe was not constrained by support of the U.S. subsidiary.
KTC was introduced by an asset-based lender to help provide a finance solution. The ABL liked the company but was unable to assist given that the subsidiaries balance sheet was not a fit. KTC was brought in to offer a solution with purchase order financing tied together with factoring. KTC quickly established a facility that provides financing with an advance rate of 100% of the cost of the required inventory in transit by making payment against documents to the company's overseas suppliers. Funding for the freight, duty, and logistics costs were also provided to cover the complete supply chain finance requirements of the company.
The quick response by KTC, including introduction to a factor with whom an established inter-creditor agreement was already in place, allowed the company to finance the entire supply chain and fulfill immediate orders. As a result, this enabled the company to be in a solid financial position to substantially increase its business with several mass merchants.
King Trade Capital (KTC) is the country's oldest and largest independent and contract finance for small to middle-market companies in the U.S., UK and Canada. Since 1993 KTC has provided more than $1.5 billion of capital in over 300 public and private companies worldwide.

Republic Business Credit announced it provided a $2.5 million working capital facility to a growing Southeastern energy sector technical and engineering services business.

The business was looking at many opportunities to expand its services and was being restricted by existing banking facilities. Republic provided a receivables line of credit facility with advance rates and a structure that ensures the business has money for growth and can pursue and fulfill new contracts.

"Currently there are many energy service companies that have excellent opportunities for growth but lack the working capital support to take full advantage of opportunities available," said Allen E. Frederic, Jr., Republic Business Credit's chief executive officer. "At Republic we provide facilities that are tied to the value of the Receivables and, therefore, not capped or limited. We fund many expanding oil field service companies whose increasing working capital needs are met through our covenant free lines of credit. Our ability to act fast and provide flexible solutions ensures that we remain a working capital funder of choice."

Republic Business Credit provides asset-based facilities, including ABL, receivables purchase lines of credit and factoring facilities, inventory, equipment and purchase order lines to provide working capital for rapidly growing, turnaround and start-up companies. Facilities can range from $100,000 to $10 million. Republic Business Credit is targeting a variety of industries, including energy, oil and gas service companies, apparel, manufacturing, temporary staffing, distribution, transportation, food distribution, safety and security, government contracting, marine, printing, janitorial and others.

Siena Lending Group LLC (Siena) announced the completion of a three year, $10 million senior secured revolving credit facility for Hudson Global Resources Management, Inc. (Hudson). The facility will be used to repay the company's existing lender and for working capital needs.

Headquartered in New York City, Hudson is the US operating subsidiary of Hudson Global Inc., a global company operating in 20 countries with over $600 million in revenue. Hudson Global, Inc. is a NASDAQ-listed company and was spun off from Monster, Inc. in 2003. Hudson is a professional-level recruitment and related talent solutions provider. The transaction was completed in conjunction with a European-based revolving facility for Hudson Global Inc.'s UK operating subsidiary. David Grende, president and CEO of Siena Lending Group, said, "We are pleased to be able to provide Hudson with the capital that they will need in a flexible structure that will allow them to continue to execute on their operating strategy in the US." David Kirby, VP of finance and global treasurer of Hudson, said, "We are very pleased with Siena's execution in closing the transaction in a timely and efficient manner. Siena offered us a very flexible covenant structure that will allow us to operate our business more efficiently."

Siena Lending Group is an independent commercial finance company offering asset based loans between $1 and $20 million to small and middle market businesses across the United States. Siena also offers a turn-key servicing platform, which provides an attractive asset-based product for community and regional banks that desire improved operating metrics and asset diversification.

ExpoCredit: The appointment of Michael D. Butterly as ExpoCredit's new senior VP business development officer was announced by Carlos Escobar, president of the specialty finance firm headquartered in Miami. Based out of ExpoCredit's recently opened offices in Atlanta, GA, Butterly will cover the Southeast US and Mid-Atlantic for the fast-growing firm, which specializes in providing working capital financing to domestic and international companies in need of immediate cash flow.

"Mike is a very seasoned, highly talented senior VP and business development officer," says Tyler V. Grady, the company's executive vice president and chief marketing officer. "He will play a crucial role in extending ExpoCredit's footprint and in broadening our customer base throughout the Southeast and Mid-Atlantic regions. His solid experience in business development, leadership, and teamwork will definitely accelerate our plans for growth."

Butterly brings to his new position, more than thirty years of progressive experience in sales and sales management, hiring and training, budget creation, financial analysis, and customer relations. Before joining ExpoCredit, he was the VP & business development officer of asset-based lending for Summit Financial Resources in Atlanta, ranking as a "Top Five" volume leader in 2012. Prior to that, he held the position of VP of asset based lending for Presidential Financial Corporation, also in Atlanta. Here, he ranked second in total fee income and earned the Presidential Sales Award for Outstanding Sales Volume for two consecutive years. For fourteen of his sixteen years with the firm, he consistently ranked first, second or third in sales volume.

"I am excited to leverage my skills and years of experience to advance the goals of this innovative company," says Butterly. "ExpoCredit is growing fast, based on their solid reputation for quality service and for developing financial products that meet the needs of today's small to mid-sized business. This is an opportunity to contribute to the success, not only of ExpoCredit, but also of ExpoCredit clients."

His extensive financial industry background includes management and senior level positions with Atlanta's Chrysler Capital Corporation, Landmark Banking Corporation, Chase Commercial Corporation, Chemical Business Credit Corporation and the Citizens and Southern National Bank.

Butterly holds a master's in business administration, finance/economics from Jacksonville State University and a Bachelor of Science in Industrial Management from the University of Alabama.

AccuVal-LiquiTec, the industry's leading provider of valuation, advisory and liquidation services, today announced the recipients of its Customer Excellence Award. The awards recognize and celebrate customers that are achieving outstanding success with the support of AccuVal-LiquiTec services in a variety of transactions.

This year, AccuVal-LiquiTec recognized Insight Equity, KPS Capital Partners, Odyssey Investment Partners and PNC Business Credit for their exceptional achievements.

"I am proud to recognize this year's recipients for their successes in 2013," said Rick Schmitt, president and CEO of AccuVal-LiquiTec. "Each and every one of these firms are testaments to the importance of strong deal-making teams. AccuVal-LiquiTec is proud to have provided critical support to each of these customers that helped them succeed during the year."

Graycliff Partners (Graycliff), an independent investment firm focusing on middle market private equity and mezzanine investments today announced it has completed an investment in Fairway Building Products (Fairway). Graycliff invested subordinated debt and equity financing in support of the purchase of a controlling stake in the Company by Argosy Private Equity. Graycliff's investment in Fairway marks the fifth investment in Graycliff Mezzanine II LP, a fund with over $250 million in commitments.

Headquartered in Mount Joy, PA, Fairway is a manufacturer of vinyl, aluminum and composite railing systems and distributor of ancillary building products. Fairway was founded in 1997 and has an additional manufacturing location in York, Nebraska. The company offers durable vinyl railing systems and lightweight aluminum and composite rail products and accessories primarily for residential decks. Fairway sells its products through wholesale distributors and direct building material distributors to residential homebuilders and commercial contractors.

"We were impressed by Fairway's leading market position and reputation for excellence, " said Andrew Trigg, managing director, Graycliff Partners. "Argosy Private Equity has a long track record of success and we look forward to partnering with them and the company's co-founders, Dale Adams and Dennis Hazenstab, to support Fairway's future growth."

Nations Equipment Finance (Nations), an equipment finance company providing equipment loans and leases across a wide spectrum of industries and asset classes, has announced the relocation of their corporate headquarters. The new offices were necessary due to the company's rapid growth since its formation in 2010. "Our new corporate headquarters give us the space to grow while continuing to provide a high level of service to our customers," stated Phil Carlson, president and CEO of Nations.

Nations' new address is 501 Merritt Seven Corporate Park, Norwalk, CT 06851. The current main phone number (203) 229-2220 will remain the same as will all phone extensions and email addresses.

Nations Equipment Finance is an equipment leasing and finance business that provides middle market companies with $1 Million to $50 million equipment leases and term loans. Nations was founded and is managed by a seasoned team of professionals with collectively over 100 years of experience in the equipment finance and leasing industry.

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How Well Do You Know Your Accounts That Are Buying Goods Offshore?

By Alan Leibowitz, Esq.

The more a lender knows about its accounts, the better informed its risk-related decisions will be. An often overlooked or underexplored area of due diligence involves regulatory compliance with respect to imports. The Customs Service, now known as U.S. Customs & Border Protection ("CBP"), regularly sends inquiries to importers, audits importers and investigates import practices to ascertain compliance. In cases of non-compliance, CBP can seize merchandise, assess additional duties, assess penalties up to 800% of the loss of revenue and even recommend criminal prosecution in the most egregious cases. Customs violations have also recently been at the heart of several high-profile whistleblower cases. Finally, CBP not only enforces its own regulations but those of numerous other agencies such as the Consumer Product Safety Commission, the Department of Commerce, the Federal Trade Commission, the Food & Drug Administration, Fish & Wildlife, etc.

A few simple questions will go a long way to determining whether your account has significant potential exposure that may impact profitability or even long term economic viability. On the upside, importers that are willing to undertake routine internal compliance reviews are often able to identify significant potential duty savings opportunities. So the next time you sit down with a potential or current account that sources product overseas, you may want to consider asking some or all of the following questions:

Read on...

Author:

Alan G. Lebowitz is one of the founding partners of Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP. GDLSK is one of the largest law firms in the United States that devotes its practice exclusively to international trade regulation. His practice areas include customs law, intellectual property, administrative enforcement proceedings, export sanctions, trade legislation, product licensing and admissibility and international trade regulations.

Company:
U.S. Bank

Position Title:
Portfolio Manager

Location: Minneapolis, MN

Please click here to view the full job posting.

Company:

CIT

Position Title:
Senior Field Examiner

Location: Los Angeles, CA