Large corporate lending reflected a cautious yet strategic approach in 2024 as lenders navigated rising interest rates and persistent economic uncertainty. Syndicated loans and revolving credit facilities remained central, though tighter underwriting standards became the norm. Demand for floating-rate loans increased, as corporations sought to capitalize on potential rate stabilization later in the year. Lenders prioritized high-credit-quality borrowers, focusing on industries like energy transition, technology and pharmaceuticals, which demonstrated strong growth and resilience. ESG-linked loans gained momentum, with corporations leveraging sustainable finance to meet investor and regulatory expectations. Alternative financing sources, including private credit, became increasingly significant as companies sought greater flexibility. Overall, large corporate lending adapted to market challenges while maintaining a focus on long-term strategic opportunities.
Deal Spotlight: First Citizens Middle Market Banking
- Category: Large Corporate
- Lender: First Citizens Middle Market Banking
- Deal Size: $60MM
- Borrower: Provider of Building Materials & Aggregates
First Citizens Delivers $60MM Financing to Support Renewal of $800MM Syndicated Credit Facility
In January 2024, First Citizens Middle Market Banking played a pivotal role in supporting one of the largest building materials and aggregates companies in the U.S. with a $60 million financing arrangement. This contribution was part of the renewal of the company’s $800 million syndicated credit facility.
Beyond the $60 million commitment, First Citizens demonstrated its capabilities by collaborating across divisions to provide additional financial solutions:
- $120 million position in the company’s $400 million securitization facility
- $39 million structured finance agreement from First Citizens’ CIT Rail division
- A cash sweep investment solution via the Silicon Valley Bank Liquidity Solutions platform
This underscores the breadth of First Citizens’ offerings and their ability to deliver comprehensive solutions tailored to client needs. The partnership, initially started through First Citizens Equipment Finance, has expanded significantly, showcasing the bank’s ability to foster long-term, strategic relationships.
“This deal is significant because it expands the extensive relationship we have with the company and showcases the breadth of services First Citizens offers our clients,” Brendan Chambers, head of First Citizens Middle Market Banking, said. “At First Citizens, we pride ourselves on relationship banking, where we deeply understand our clients’ goals to develop impactful solutions.”
“Our team is really well-versed at understanding the business and the needs of our customers, but also really understanding the full power of our platform and what we can bring to bear,” Chambers said. “Everybody can lend money. It’s how you do it and the power of how you bring people together that is key to driving crisp execution.”
