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    Contact Blacksail Capital

    1 Toronto Street
    Toronto, ON M5C 2V6

    Telephone: 416.708.8746 (CANADA)
    Telephone: 512.710.6737 (US)
    Email: info@nextedgecf.com

    News & Blog

    News & Blog

    Financing Solutions and Expert Support to Empower Business Growth

    December 17, 2020

    Financing Solutions and Expert Support to Empower Business Growth

    Dear clients and partners,

    We hope you are staying safe and healthy as we enter an unusual holiday season. We are in an environment today that has been especially challenging for many companies. Understanding that many businesses are going to be facing an increasingly tough time with tightening criteria at many traditional lenders – and in addition, many of our competitors in the market are seeing their own capital constrained – we have been actively working to ensure that we have the capacity to assist and step in where others won’t or can’t.

    The Garrington Group of Companies, Inc. (“Garrington”) has built up a loan book exceeding $400 million which includes contributions by Blacksail Capital Partners (“Blacksail”) focusing on the underserved small to mid-sized middle market sector providing working capital loans from $1 million to $25 million which are generally secured by Accounts Receivable, Inventory, Machinery, Equipment and Real Estate.

    Our current loan book is broadly diversified with exposure to over 200 Factoring, Asset Based Lending (“ABL”) and Specialty Finance loans, with transactions in 32 States and 6 Provinces. Presently, the geographic weighting of the loan book is approximately 45% US and 55% Canadian. Of these positions, over 150 are factoring positions or facilities, 35 are asset-based loans, and 12 are asset-based lender finance loans. Top regional exposures are in Ontario, New York, South Carolina, Illinois, Texas, British Columbia, Quebec, and North Dakota.

    We wanted to share with you that Blacksail and its affiliates recently closed on a $30 million lender finance facility.

    Description of the transaction:

    A secured consumer finance lender, who we have known for some time, came to Blacksail looking for a final piece of acquisition financing for a very complicated transaction. The acquirer needed a commitment letter quickly for the public company target to secure the pricing. Within 48 hours, we provided a $30 million commitment letter so the deal could proceed. In the end, our borrower/acquirer bought the pubco. and another private company, both in the consumer finance space, bringing their overall loan portfolio to well over $1 billion. Our tranche of debt financing ended up being senior secured at the Holdco level, with over $115 million of new equity and junior debt beneath our capital, while allowing the senior lender on the direct loan portfolio to remain in place. A really creative structure that was made possible by our existing relationship with the borrower, significant equity/first-loss capital in the stack and Blacksail’s ability to move quickly for an opportunity that made sense.

    We are currently seeking factoring, ABL, equipment finance and lender finance opportunities. Our preferred loan size is $5 million to $25 million, but we will expand (both lower and higher) given the right circumstances.

     

    For more information on Blacksail Capital Partners, please contact us.

     

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