Pasadena Private Finance closed on a $30 million senior credit facility with East West Bank.

The credit facility has a maturity of three years, is priced at LIBOR/SOFR plus 3.25% and allows for up to a 65% advance rate on Pasadena Private Finance’s loan portfolio. The credit facility will allow Pasadena Private Finance to increase its current portfolio and take advantage of favorable trends in the guaranteed business loan market. As government stimulus programs begin to sunset, there will be a strong demand from lower middle-market companies to access credit from non-bank lenders.

“We are excited to increase our ability to serve lower middle-market firms with this enhanced credit facility from East West Bank,” Michael McAdams, CEO of Pasadena Private Finance, said. “The decades of experience of our team allow us to see ways to make good loans to good firms run by established entrepreneurs.”

“We were fortunate to find in East West Bank a nationally-recognized banking partner willing to listen to our unique story and roll up their sleeves in the same way we do for our own borrowers,” Iain Whyte, chairman of Pasadena Private Finance and of the firm’s parent, Pasadena Private Holdings, said. “The fact that East West Bank is also located in our hometown of Pasadena is a wonderful bonus.”

“Over the past several years, we have developed expertise in the specialty finance space, and our portfolio has demonstrated strong double digit growth year in and year out,” Andrew Stein, senior managing director and head of specialty finance for East West Bank, said. “Our experience allows us to support emerging lenders with strong management teams and unique programs like PPF.”