Asset-based lending remained a vital financing solution in 2024, particularly for businesses navigating economic uncertainty. Rising interest rates and tighter credit markets increased demand for ABL, as its collateral-focused structure offered flexibility and accessibility. Companies leveraged ABL to fund working capital needs, manage liquidity and support mergers or acquisitions. Sectors like manufacturing, retail and logistics saw heightened ABL activity due to their asset-heavy profiles. Non-bank lenders gained prominence, offering creative structures to meet borrower needs amidst tightening bank regulations. Technological advancements improved collateral monitoring, streamlining the loan process and enhancing transparency. Additionally, ESG considerations began influencing ABL, with some lenders tailoring facilities to align with sustainable practices. Overall, ABL adapted to market dynamics, supporting businesses with reliable and scalable capital.
Deal Spotlight: Citizens Bank
- Category: ABL
- Lender: Citizens Bank
- Amount: $435MM
- Borrower: Thryv
- Industry: Software as a Service
Thryv’s Strategic Financing for SaaS Growth
Thryv Holdings, a SaaS provider for small and medium-sized businesses, successfully completed a strategic refinancing initiative aimed at bolstering its SaaS growth trajectory. The company partnered with Citizens Bank to lead and syndicate a new $350 million term loan B facility and an $85 million asset-based lending facility, finalized on May 1, 2024.
This financing initiative aligned with Thryv’s objectives to reduce interest costs, enhance liquidity and attract a broader investor base as it transitioned from traditional Yellow Pages services to modern marketing and software solutions. Citizens leveraged its expertise in ABL structuring and syndication in the technology sector, pre-marketing the term loan B to secure strong anchor commitments and targeting an investor group aligned with Thryv’s long-term growth ambitions. The TLB was significantly oversubscribed, underscoring investor confidence in Thryv’s growth strategy and its shift to recurring SaaS revenue.
The $350 million TLB will mature in 2029 and features favorable terms, including a SOFR-based interest rate with a 6.75% margin. The ABL facility, maturing in 2028, provides incremental borrowing availability with a competitive rate structure and no penalties for prepayment. These facilities not only refinanced existing debt but also equipped Thryv with the financial flexibility to pursue its aggressive SaaS expansion.
This strategic financing positioned Thryv for sustained growth as it continues its transformation into a leading software solutions provider. The successful execution highlights Citizens’ ability to craft tailored, market-driven financing solutions, empowering technology-driven businesses like Thryv to achieve their ambitious goals while fostering long-term partnerships.
