October 2013

FinalCut: GE Capital Breaks New Ground in Japanese ABL Market

ABF Journal illustrator Jerry Gonzalez provides his take on GE Capital’s agreement to provide a $20 million revolver to Imation in Japan, where asset-based lending is a relatively new form of corporate funding.

imation 2

GE Capital signed an agreement with Imation Corporation Japan, a subsidiary of Imation Corp., a global scalable storage and data security company, headquartered in Oakdale, MN, to provide up to a two billion yen (approximately US$20 million) revolver in Japan.

GE Capital said the facility will act as a liquidity line and it adds flexibility to Imation’s global treasury needs. The facility includes an accordion feature that allows the facility to be increased to three billion yen at Imation’s request.
Asset-based lending is a relatively new form of corporate funding in Japan, where lenders typically only lend on hard assets, such as equipment and real estate, GE Capital said.

Clark D. Griffith, managing director of Structured Finance of GE Capital Japan, said, “We are pleased and excited to provide this asset-based credit facility to Imation, and we look forward to supporting them as they achieve their strategic goals globally. GE Capital is one of the major providers of asset-based loans in the world, and this deal shows our global ABL underwriting capability leveraging our worldwide network to provide global financial solutions and support the financial needs of global companies with multinational operations like Imation. GE Capital plans to grow its asset-based loan business in Japan and Asia Pacific.”