Haversine Funding recently closed $19.3 million in transactions.
The first transaction was a $13 million senior secured lender finance facility to an equipment lender specializing in truck and trailer loans in the United States. This asset-based lender has increased its sales and workforce over the past three years, partnering with Haversine along the way to help facilitate growth. The company’s Haversine line was recently raised to $13 million, increasing from an original amount of $5 million. Working together, Haversine and the owners of the company structured a borrowing base along with supplemental capital, effectively providing 100% funding on the company’s equipment loans while the company’s sales accelerated in the transportation space the past year.
The second transaction was $3 million of a $4.2 million real estate participation in three assisted living centers located in North Carolina and Florida. These distressed properties were acquired and renovated by the owner, who then increased occupancy to 90%. The limited historical performance limited the owner’s options in obtaining traditional bank financing. A real estate lender that Haversine has worked with on multiple transactions structured a bridge loan with a 60% loan to value while the companies await USDA refinancing to be completed. Haversine helped share in the funding, participating directly in the majority of the transaction and helping the real estate lender close and fund this new loan.
The third transaction was $1.8 million of a $3 million inventory participation in an agricultural equipment manufacturing loan with an asset-based lender. This stand-alone inventory facility was provided to refinance the company’s existing higher rate working capital line, as the business has continued to grow and improve performance over the past year. This new, larger inventory loan will reduce the company’s cost of capital and provide sufficient funding for growth.
The final transaction was $1.5 million of a $3 million factoring participation for a staffing company located in Georgia. The business was using more of its factoring facility as it grew and its factor wanted to participate out its concentration in this client as the company used more of its line. Additionally, the overall pricing on the deal was more competitive in the marketplace from what the factor typically offers, and by working with Haversine, the factor blended its yield to be more in line with its existing offerings. The participation funding by Haversine helped the factor reduce exposure while also improving its internal returns on the account.
