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03novdec

November/December 2003


Vol. 1 No. 10
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ABF Journal, Nov/Dec 2003
November/December 2003

Specialty Lenders Provide the Missing Piece

Creative Financing Keeps Healthcare
Companies on Path to Profitability
By Bradley J. Velie

While the market shakeout in the healthcare industry is not yet over, a number of businesses that have weathered the difficult times are now moving towards profitability. For many, floating rate, asset-based credit facilities and other creative financing options are becoming increasingly attractive.
(Ref # LSP012)

Vibrant Radio Sector… Attractive Economics & Stable Assets
By Jeffrey S. FerryEven during a relatively challenging period for the media markets overall, the world of radio has remained a vibrant financing sector with attractive economics and stable asset values, and has been distinguished by committed management teams that are actively seeking financing.
(Ref # LSP013)

Still Mining the Gold in the Great Retail Rush
By Cheryl Hoffman Carner

In the early 1840’s, California was a distant unchartered territory that many had no interest in even visiting. It wasn’t until 1848 when gold was discovered that thousands made the trip in the interest of reaping the reward of this nascent market. A parallel can be drawn with the retail sector in the early 1990’s, which was equally desolate and later experienced a similar rush.
(Ref # RETAIL005)

Consumer Finance ABL: Balancing Risks & Rewards
By Sunni L. Farkas and Jerry Kopitsky

Although many banks and financial institutions have backed away from lending to consumer
finance businesses in recent years, Bank of America Business Credit (BABC) thinks the rewards of consumer finance lending far outweigh the risks. In fact, asset-based lending to consumer finance companies is a thriving supplemental product line of BABC’s asset-based lending business.
(Ref # LSP014)

Phoenix Rising: IPO Market Returns to the Commercial Finance Industry
By Robert P. Rinek

Like the mythical phoenix that rises from the ashes with renewed youth and vigor, we are seeing the rebirth of the commercial finance industry and no story is more noteworthy than CapitalSource, Inc. In the following article, Robert Rinek discusses the particulars of this success story, which has been well received by the market.
(Ref # COMP009)

Niche Lending: A “Womb to Tomb” Approach
By Andy Moser

Although volatile at times, the retail and broader consumer channel have become uniquely
predictable indicators of the overall domestic economy. Therefore, in a commercial finance business dedicated to this sector, a uniquely integrated proactive approach can provide
the greatest foundation and opportunity for profitable growth.
(Ref # RETAIL006)

Threat or Opportunity: Migration of Manufacturing Overseas
By Martin J. McKinley

For the past three years, employment in the manufacturing sector has continued to decline while
the trade deficit has soared. The collateral value of many manufacturing assets has also declined as the domestic resale market shrinks. Does this mean gloom and doom for lenders whose core customer base has been the traditional domestic manufacturer?

(Ref # INTL013)

Mind & Money… Sharing the Turnaround Stage
By Edward Hostmann

Turnaround situations involve a complex interplay of heart, mind, and pocketbook. Lenders
need to be continually aware that all three factors are forever present and interlocked within
their loan portfolios.
(Ref # TM018)

Purchase Order Financing: Another Arrow in Your Funding Quiver
By Eric Fenmore
In a transition economy like this, one of the greatest challenges facing any asset-based lender or
factor is meeting the ever-increasing capital needs of its clients. Developing a strong relationship with an experienced purchase order finance company can be very beneficial.
(Ref # IND045)

What Constitutes a Certified Inventory Appraisal?,
Part II

By Scott M. Creel, ASA

Unlike a real estate report, an inventory appraisal has no real standardized, formal structure. In other words, the inventory valuation cannot only be compiled by virtually anyone, but can
contain (or not contain) virtually anything. This article continues to discuss what constitutes a certified inventory appraisal.
(Ref # APP013)
Columns

A PROFILE OF SUCCESS
Building on a Solid Foundation
A Profile of Dan Marszalek, Managing Director, Merrill Lynch Capital, Corporate Finance

Building a new commercial finance platform from the ground up is considered by many to be a daunting task requiring a unique set of skills. But that didn’t seem to faze Dan Marszalek, Managing Director of Corporate Finance for Merrill Lynch Capital.
(Ref # EXEC011)

LEGAL EYES
Keeping the Peace… Ensuring A Successful Liquidation
By Steven N. Kurtz

No matter how diligent you are with your portfolio or credit criteria, it is a statistical reality that
eventually a default will occur and you will be required to liquidate your collateral. Given this
eventual reality, it is important that the reader become familiar with certain basic concepts which
can assist you in a successful liquidation.
(Ref # LGL025)

PUTTING IT TOGETHER: ANATOMY OF ABL TRANSACTIONS
Fleet Retail Group & Zale Corporation Secured Facility Provides a Brilliant Solution
By Ward Mooney

Recently, demand for secured, senior debt underwritings has come from investment grade retailers that have found the secured market no longer connotes a negative stigma. Industry giants such as Zale, Saks and Circuit City have found the benefits of enhanced liquidity have a positive impact on both capital structure and operating strategies.
(Ref # DLS009)

TURNAROUND CORNER
Stakeholders & Crisis — Communication is Key to Survival
By Michael J. Epstein

In times of financial crisis, rumors and innuendo appeal to the most basic of human concerns — fear of the unknown. Clear, concise and calculated communication help take the guesswork out of managing financial distress.

(Ref # TM019)

FACTORING FOCUS
Effectively Dealing With Thorny Issues
By Robert Blaine Waugh

Whether it is dealing with a client’s tax issues or managing the dynamics of a subcontractor relationship, factors can achieve success by dedicating themselves to finding solutions to their clients’ thorny issues.
(Ref # FAC030)

If you have questions regarding ABF Journal content, call us at 800.708.9373 x128 or email jhoffman@abfjournal.com.