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12novdec

November/December 2012

Fall Conference Issue
Vol. 10 No. 8
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FEATURES

2012 ABL Volume Drops; 2013 Dealflow … ‘Questionable’ - Asset-based lenders have found deal opportunities rather slim so far this year, with Q1/12-Q3/12 ABL volume dropping 45% over year-ago levels. Where dealflow will come from for the rest of the year and into 2013 is questionable, as the refinancing cliff has been pushed out to 2017, leading most lenders to dismiss hopes for a meaningful pipeline in 2013 absent a pickup in M&A.
Lender Amnesia or Healthy Competition? ABL in the Post-Downturn Era - Is there presently a trend of soft pricing and loose structure in the ABL marketplace? Or is post-recession competition a reflection of normal supply and demand in the current the economic cycle? Howard Brod Brownstein asks 14 leaders of institutions ranging from ABL giants to smaller, non-regulated players to share their candid observations about ABL pricing and structure for the balance of 2012 and 2013.
ABLs Benefit From Boom in Gas Exploration - Over the past 12 months, the rising price of crude oil, coupled with the move of energy companies away from coal, has resulted in the emergence of shale gas exploration in the U.S. and Canada. Shale gas production is a low-cost energy alternative that is creating new capital investment opportunities for private equity groups and asset-based lenders.
Looking Back to Move Forward: The Syndicated Loan Market — Yesterday and Today - In an effort to provide an end-of-the-year update on the syndicated loan market, Trimingham’s Hugh Larrett-Smith discusses the sector both here and abroad with leading lenders. He also offers an historical perspective detailing the success of Bernard Baruch and how syndicated loans have thrived throughout the centuries.
Back to the Future: Opportunities Are Ripe for Second Lien Lenders in 2013 - An upswing in competition for high-quality transaction opportunities this year led to increasing demand for yield as banks and high-yield bond investors were more aggressive in extending capital to large borrowers. Gordon Brothers’ Patrick Dalton says that in 2013, second lien lenders that understand downside risk and continue their sharp credit skills will find areas of opportunity.
Flexibility: The Final Frontier For Lenders - With an imbalance between supply and demand, conditions this year were supposed to favor lenders. Instead, the first half of 2012 has been lackluster, with loan volumes below last year’s pace. In order to win financings, flexible participation has become increasingly important. And, those lenders with multiple sources of funding are finding themselves at a growing advantage.
SENIOR LOAN OFFICER SURVEY: Large/Mid-Market C&I Demand Strengthens Amid Waning European Bank Competition - In July 2012, the Federal Reserve Board conducted a Senior Loan Officer Survey on bank lending practices over the previous three months. The majority of lenders from 64 banks — 36 large banks and 28 smaller banks — reported loan demand from large and middle-market firms strengthened “somewhat further” with some noting business had increased due to decreased competition from European banks.

COMPANY/EXECUTIVE PROFILE

Expanding a Footprint to ‘Cover a Lot More Ground’ Industry Veterans Launch Triumph Commercial Finance - Finding the right market or niche is important when launching a new venture. In Triumph Commercial Finance’s case, the most crucial part was how to provide financing to those borrowers that are sometimes lost in the shuffle, those on the lower end of the market. ABF Journal speaks with EVP Dan Karas about what is driving Triumph Commercial Finance.

FROM ALL FACETS

TURNAROUND CORNER

2013 … Where Do We Go From Here? Finding Opportunities for a Profitable New Year - Despite ongoing economic concern throughout the U.S., Robert Katz and Marc Levee offer their thoughts on identifying opportunities to make 2013 profitable and prosperous. No question times might be tough, but your level of creativity will be one of the biggest differences between a mediocre or dazzling new year.

SPECIALTY LENDING SHOP

The Factoring Factor: Product Resiliency, Demand & Unique Camaraderie Keeps Factoring Strong in Challenging Times - While the past year has been a challenging one for anyone involved in commercial finance, one of the few niches that has remained solid in 2012 is factoring. IFA founder and CEO, Bert Goldberg shares his views on the industry — past, present and future — and talks about the role the IFA will play in facilitating factoring’s future global growth.

BANKRUPTCY UPDATE

When Law Firms Go Bankrupt — What Secured Lenders Can Learn From the Dewey Bankruptcy - When law firm Dewey & LeBoeuf filed for Chapter 11 protection, it was obligated to its secured creditors, among many others, led by JP Morgan on a $75 million line of credit facility. Jeffrey Wurst explains what led to Dewey's collapse and offers advice regarding key indicators of a potential creditor’s fiscal irresponsibility.

LEGAL EYES

Law Firm Owed Various Duties Stemming From Investigation Into Insider Wrongdoing - The Le-Nature’s saga is one that has continued for years. Recently, Marc Kirschner, in his capacity as the trustee of the company’s liquidation trust, has gone up against K&L Gates and others that have represented the company. Here, Hinshaw & Culbertson’s Terrence McAvoy summarizes the latest in the case.

FINALCUT

FinalCut: Thain Denies CIT Sale Rumors - ABF Journal illustrator Jerry Gonzalez shares his depiction of CIT’s CEO John Thain’s declaration during a CNBC interview that he is “absolutely not” seeking a buyer for the company.

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