Finacity, a White Oak company, and PNC Bank launched a trade receivables securitization for a U.S.-headquartered technology support company supporting enterprise and consumer products as well as managing IT infrastructure.
The securitization program will allow the company up to $25 million in senior funding provided by PNC Bank to further enhance the company’s liquidity position. The three-year facility is collateralized by receivables originated in the United States. Furthermore, the securitization program achieved accounting derecognition per IFRS as a result of Finacity providing up to an additional $1.6 million in junior funding as well as serving as control party of the securitization’s impaired receivables.
Finacity provided analytic and structuring support and is serving as the ongoing transaction administrator, junior investor and control party. PNC Bank serves as the arranger and senior funding provider.