Encina Business Credit, a non-bank asset-based lender for both privately-owned and publicly-traded companies, announced a recapitalization and an expanded capital base provided by affiliated funds of Barings along with participation from Encina management. This recapitalization provides the liquidity necessary for Encina to expand its platform and footprint as a working capital provider in North America.
In conjunction with the recapitalization, Encina changed its name to Eclipse Business Capital, effective immediately. Despite the name change, the company will remain headquartered in Chicago, with offices across the United States. It will continue to provide revolving lines of credit and term loans ranging in size from $10 million to $125 million and secured by accounts receivable, inventory, machinery and equipment and real estate.
“Same people, same product and same solution-oriented approach,” Marty Battaglia, CEO of Encina Business Credit and now Eclipse Business Capital, said. “We will maintain the same disciplined and differentiated approach to ABL lending that has allowed us to scale our business to the level we have and continue to do so. We look forward to providing the same compelling value proposition under a new brand name.”
Barings, a financial services firms, deployed funds it manages, including Barings BDC.
“Barings, Barings BDC and our affiliated funds are delighted to partner with EBC on this important next step in cementing EBC as a leading working capital provider in North America,” Jonathan Bock, CFO of Barings BDC, said. “Marty and the great team of working capital professionals at EBC operate a best-in-class, solutions-oriented platform that meets the needs of many large and middle-market businesses over market cycles. EBC’s deep relationships, strong credit culture and market-leading expertise combine well with Barings’ permanent capital base and its long-term investment approach.”
“This is an incredible milestone for us at EBC. While we are thrilled to become a part of Barings, the foundation and support we received from Encina Capital and Oaktree created an incredible springboard for our next growth phase,” Battaglia said. “The breadth and depth of Barings’ private credit team, combined with the strength, diversity and scale of resources available across the entire firm, creates a very exciting opportunity for our firm.”
“In only five short years, Marty and his team have built a terrific platform that has differentiated itself through a consultative and solution-oriented approach to working with customers to help them achieve their objectives,” Andrew Salter, founder and CEO of Encina Capital, said. “I am grateful for the tremendous support that we’ve received from an affiliate of certain funds managed by Oaktree Capital Management, L.P. and our lender group, and I’m confident that EBC is well positioned for a highly successful next chapter with Barings as its partner.”
Wells Fargo Securities served as exclusive financial advisor to Encina Business Credit (now Eclipse Business Capital) and Skadden, Arps, Slate, Meagher & Flom served as its legal advisor. Keefe, Bruyette & Woods served as exclusive financial advisor to Barings and Dechert served as its legal advisor.