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Antero Resources Announces Borrowing Base Increase to $4.0 Billion; The Bank Syndicate, Which is Co-led by JPMorgan Chase Bank, N.A. and Wells Fargo Bank, N.A., was Expanded to Add Five Banks Increasing the Number of Participants to 26 Banks
Range Announces New Credit Facility and Ratings Upgrade
Year-to-Date Venture Capital Dollars Invested Eclipses Total Dollars Invested in All of 2013; Venture Capital Investing in Q3 Down 27% From Q2, but Number of Deals Exceeds 1,000 for the Sixth Consecutive Quarter
AlixPartners Welcomes Fernando Oliveros as a Managing Director
Tall Oak Midstream Secures $100 Million Credit Facility
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Gibraltar proved flexibility of financing in two $3 million private equity-backed deals. Part of being a flexible senior financing group is providing critical, non-dilutive capital to add greater value to all kinds of private equity investments, in all variations of verticals-and all phases of business. Gibraltar regularly secured up to $10 million to support private equity group-backed investments for:
- growth/expansion
- new buyouts
- recapitalization
- fatigued lender replacement
- dividend recaps
- minority investments
- stressed situations
Some recent examples of how its asset-based debt structures can work for private equity group-backed purchases, recapitalizations, sales or turnarounds of all types of small- to medium-sized businesses include: $3 million for a California distributor of emergency/disaster products. In the midst of turnaround, this private equity group-backed distributor of emergency- and disaster-related products and equipment, including glow sticks, flashlights and lanterns, needed fresh working capital to replace its existing factoring facility. Collaborating with sponsor Highland Capital Partners, Gibraltar provided a $3 million asset-based line of credit to give the company the liquidity needs to succeed.
Backed by private equity group Cyprium Investment Partners, a New York-based manufacturer of prepared foods for major national food chains had been operating without a line of credit. Experiencing strong growth, the producer needed fast access to additional working capital to fulfill new customer contracts. Gibraltar created a $3 million asset-based line of credit to boost momentum for this progressive, private equity group-backed business. In addition, last month Gibraltar secured factoring lines of credit to expand working capital for two diverse businesses: $3.5 million to a publicly traded media applications and digital signage company in Texas, and $200,000 to assist a North Carolina-based commercial fiber optic cable installer.
King Trade Capital (KTC) is pleased to announce the recent funding of a $1 million purchase order finance commitment for a Washington-based designer and importer of specialty cooking tools. After raising some initial capital from family members, this rapidly growing importer started landing a series of increasingly large orders from specialty stores and online retailers. This success created a dilemma for the management team who had to decide whether to raise more equity (which would dilute their ownership stake) or seek alternative financing. KTC was introduced to the company by a factor to help provide a finance solution. The factor worked to approve the credit of the end customers who were providing larger orders. Sensing a liquidity challenge due to the size of the orders, the factor recommended purchase order financing as a method for the company to pay its overseas suppliers. KTC was brought in to offer a solution that would integrate purchase order financing with the 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 its growing customer base. King Trade Capital (KTC) is the country's oldest and largest independent purchase order and contract finance company focused on providing purchase order and contract finance for small to middle-market companies in the US, UK and Canada. Since 1993 KTC has provided more than $1.5 billion of capital in over 300 public and private companies worldwide. Through our extensive financial resources and our team's expertise, we are able to offer our clients financial, strategic and business development support not available elsewhere. Our focus is centered on building our client companies' profits and creating long term value for equity holders.
Utica Leaseco, LLC is pleased to announce the completion of a refinance and amended lease transaction in the amount of $425,000.00 during the second week of October, 2014. Utica closed and funded the transaction for a hydraulic lift system manufacturer and vintage gas pump supplier that is headquartered near Richmond, Virginia. Utica was able to provide the needed working capital by unlocking the equity that existed in the company's manufacturing equipment and vintage gas pumps. Utica worked closely with the company, its management and advisory team and was able to close the needed funding on an expedited basis. Utica relied on the company's equipment as the sole collateral for the transaction.
Utica Leaseco, LLC is pleased to announce the completion of a senior secured loan transaction in the amount of $475,000.00 during the second week of October, 2014. Utica closed and funded the transaction for a construction and excavating company that is headquartered in Springfield, Ohio. Utica was able to provide the needed working capital by unlocking the equity that existed in the company's construction and trucking equipment. Utica worked closely with the company and its management team and was able to close the needed funding on an expedited basis. Utica relied on the company's equipment as the sole collateral for the transaction.
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TD Bank, America's Most Convenient Bank�, has named Stephen M. Metivier as a managing director with the bank's Asset Based Lending (ABL) group. Based in Boston, he will cover the retail sector, focused on building new direct retailer lending relationships by providing the most flexible financing solutions to clients.
Metivier has 23 years of experience in banking and finance, with more than 17 years specializing in lending to retailers. Prior to joining TD Bank, he was with Wells Fargo Capital Finance's Retail Finance Division. Before that, Metivier worked for 12 years in various capacities at GE Capital, where he helped build its Retail and Restructuring group.
"We are very pleased to welcome Steve to TD Bank and we congratulate him on his new role," said Jeffrey Wacker, managing director and head of business development, Asset Based Lending, TD Bank. "Steve brings a tremendous amount of business-building experience. This experience, combined with the investments we're making in our people, products and platforms, will allow us to extend TD's legendary service to more retailer clients."
"I'm thrilled to join TD Bank and continue building its growing retailer lending portfolio," Metivier said. "My dedication to retailers has never been stronger and I look forward to working with TD's ABL team to provide our clients the very best in customer service."
Metivier is a longstanding member of the CFA and TMA and serves on the Advisory Board of the David F. Miller Retailing School at the University of Florida. He is a 1991 cum laude graduate of Northeastern University in Boston.
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Paul Hastings LLP, a leading global law firm, announced that the firm represented Tall Oak Midstream, LLC, an innovative midstream company, in securing a $100 million senior credit facility that may be expanded to $150 million. The financing will be to support Tall Oak Midstream's subsidiary, TOMPC, LLC and will assist in building-out and expanding its natural gas gathering and processing system in the Central Northern Oklahoma Woodford (CNOW) play. Five banks participated in the credit facility with Capital One Securities Inc. and Compass Bank acting as joint lead arrangers and Amegy Bank, BancFirst and Bank of Oklahoma serving as additional participants. This year Paul Hastings has advised Tall Oak in securing more than half a billion dollars in equity and debt capital. Prior to this debt financing, EnCap Flatrock and Tall Oak's management made an initial $100 million commitment to Tall Oak in February and have since made additional equity commitments totaling $400 million in the aggregate. Leveraged Finance partner Michael Chernick, Energy partner Jimmy Vallee and of counsel Lindsay Sparks led the Paul Hastings team, which also included Energy Tax partner Greg Nelson, Kim Hicks, Alexandra Ciganer and Will Mabry. Paul Hastings' Houston office also recently advised Atlas Pipeline Partners, LP in a $800 million financing, SHD Oil & Gas, LLC in a $200 million financing, Castex Energy 2005, L.P. in a $200 million equity commitment from Riverstone Holdings, LLC, Atlas Resource Partners, LP in the purchase of substantially all of the assets of GeoMet, Inc., NuStar Logistics in a $300 million public offering and Wells Fargo in a $1.5 billion financing for Legacy Reserves LP. Paul Hastings LLP also announced that the firm represented UBS Securities LLC, J.P. Morgan Securities LLC, Jefferies Finance LLC, Keybank National Association and Morgan Stanley Senior Funding, Inc. as joint lead arrangers and joint bookrunners and UBS AG, Stamford Branch as administrative agent in connection with a $160 million and €70 million incremental add-on to DPx Holdings B.V.'s credit facility. The proceeds were used primarily for the purchase of Gallus BioPharmaceuticals, LLC, a contract manufacturing company involved in biologics development. DPx Holdings B.V. is the privately held parent company of the Patheon, DPx Fine Chemicals and Banner Life Sciences businesses. The company is a leading provider of CDMO services, pharmaceutical products and products for other industries. Leveraged Finance partners Michael Michetti and Joel Simon led the Paul Hastings team, which also included associates Chris Ross, Heidi Spalholz, Sun Kim, Mitch Zuckerman and Yian Huang. In Thomson Reuters' First Half 2014 League Table the firm ranked second in "U.S. Lender Law Firm Bookrunner M&A." Paul Hastings advised on numerous significant finance transactions in the first half of 2014 including: representing the lenders in the $1.65 billion financing for the acquisition of a majority stake in Royal DSM NV's pharmaceuticals business by JLL Partners ("JLL") through Patheon Inc.; representing the lenders in the $1.3 billion financing of Apollo Global Management's acquisition of CEC Entertainment, Inc.; advising the lenders in the $1.6 billion financing for Media General Inc.'s acquisition of Lin Media LLC; and representing the lenders in the $1.1 billion financing for Accellent Inc.'s acquisition of Lake Region Medical Inc.
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Click here to view TSL's Deal Table, the industry's official list of ABL & factoring deals compiled by the Commercial Finance Association.
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"Hot Money" Makes Trade Financing Riskier With China
By Stephen Perl
Hot Money has long been a problem for China and can create major problems for commercial lenders and factoring companies financing trade as part of their portfolio. In some instances, factoring invoices are often derived from an up stream trade transaction that is also financed by the factoring company. Wu Ruilin, China's Deputy of its State Administration of Foreign Exchange (commonly known as SAFE), has uncovered over $10 billion of fraudulent trade financing transaction especially with product flowing through 24 provinces including the Qingdao port (per Wall Street Journal Sept. 25th, 2014). Companies or entities that are transferring money in or out of China through trade transactions without the permission from SAFE are considered to be making "Hot Money" transactions. For example, the trade shipments involved in this type of "Hot Money" problem typically claim certain value on their shipping documents, but the actual value is not correct. Therefore, the trade financing or funding connected to this trade transaction is transferring far too much money for the actual value on the documents. This process allows money to be transferred across boarders without currency controls. China blames much of the real estate appreciation in the last 10 years to be due to money from these areas. Companies that are factoring invoices related to trade need to perform proper due diligence by having their own independent physical inspection at the port of origination to ensure the validity of the shipping documents.
Read on...
Author:
Stephen M. Perl, MS, MBA is the CEO of 1st PMF Bancorp, a leading US commercial bank lender, and the founder and CEO of ChinaMart� Los Angeles, a platform that assists Chinese companies in their investment in the USA.
Mr. Perl has successfully grown 1st PMF Bancorp's lending portfolio to one of the largest private, short-term business lenders in the US with specialty in factoring and trade finance to company with annual sales from $1 to $50 million. He designed PMF Bancorp's, "Supply Chain Plus Financing Program™ " to provide the most comprehensive supply chain financing platform in the US for small to medium sized companies doing business between the US and China. Mr. Perl established the first private US lender in China in 2004 and has recently published a book called, "Dancing with the Dragon: The Secrets of Doing Business with China" (2012) as an executive's guide to doing business with China.
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Company: JP Morgan Chase
Title:
Commercial Bank - ABL Sr. Field Exam Associate
Location: Irvine, CA
Company: Comerica Bank
Title: Vice President Asset Based Lending Regional Field Exam Manager
Locations: San Jose, CA and Costa Mesa, CA
Company PNC
Title: Field Examiner II
Locations: Multiple locations through the U.S.
Company Business Capital Title: Business Development Officer, Regional VP
Locations: San Francisco; LA/Orange County; NYC Metro, NY, NJ or CT; New England, MA or NH; Midwest, Chicago
Company Eaglewood Capital Management LLC
Position Title: Investor Relations Manager
Location: New York, NY
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Events Calendar
Upcoming CFA Professional Development Programs and Chapter Events. Please click here to view our entire calendar of events. Conferences/Workshops
October 20 - 22, 2014 Otterbourg P.C. New York, NY Start time: 9:00 AM
November 12-14, 2014 Marriott Wardman Park Hotel Washington, D.C.
December 2 - 4, 2014 Buchalter Nemer, P.C. Los Angeles, CA Start time: 8:30 AM
December 2-4, 2014 Los Angeles, CA
January 15, 2015 - February 15, 2015
February 10-11, 2015 Mandarin Oriental Hotel Las Vegas, NV
March 2- 4, 2014
Fontainebleau Miami Beach
April 27- 29. 2014 Bank of America Merrill Lynch UK
October 22, 2014 Location TBD Event start time: 4:30 p.m.
CFA's MidSouth Chapter - Skeet Trap and Sporting Clays
Dinner to follow October 22, 2014 Nashville Gun Club
Nashville, TN
October 22, 2014 Bierhaus NY 5:30 - 8:30 p.m.
LA Food Works Los Angeles, CA
October 23, 2014 Charlotte City Club Charlotte, NC October 23, 2014 Burns & Levinson Boston, MA Save the date! October 29, 2014
Hyatt at the Bellevue Philadelphia, PA CFA's Atlanta Chapter - Educational Lunch: Where are we now and what's ahead? November 5, 2014 McGuireWoods LLP Save the date!
CFA's California Chapter - Young Professionals Group Event
November 19, 2014 The Line Hotel Los Angeles, CA 6:0-8:30 p.m. November 20, 2014 Lauderdale Yacht Club Ft. Lauderdale, FL
December 10, 2014 Palm Restaurant Charlotte, NC
December 11, 2014 Loews Hotel Philadelphia 5;30 p.m. - 8:30 p.m.
December 17, 2014 Town and Country Golf Club St. Paul. MN
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