Economic Development Resources, Fund Raising, Massachusetts, Mezzanine Debt, News, Banks, Finance Companies
Wednesday night I attended the ACG spring networking event and had an opportunity to speak with lenders from PNC Bank, Fifth Third Bank, Santander, U.S. Bank, People’s United Bank, and several others. Despite the muted responses I heard from the asset-based lending panel earlier in the week, commercial lenders seem more upbeat about the current lending environment. Interest rates on revolving lines of credit are currently pricing at LIBOR + 350 for commitments of $2 million to $10 million, and as low as LIBOR +175 for larger deals. Term debt remains hard to find from banks, and the most aggressive lender I spoke with said they would only provide term debt up to 30% of the total loan package. That means that if you needed $9 million in total bank debt, you could at best hope to get a term loan for $3 million, assuming your current assets supported a $6 million revolving line of credit.
Term debt is available however from a variety of mezzanine lenders, hedge funds and finance companies. Suzanne Dwyer from MCRC was there last night, and she said that her firm, which provides subordinated debt to middle-market borrowers in Massachusetts is doing term loans of up to 7-10 years in cooperation with banks to help provide borrowers with the financing they need.
Contact Info for the Bankers mentioned in this article:
PNC Bank, NA: Stephen Kanarian (Stephen.Kanarian@pncbusinesscredit.com) 617-338-5069
Fifth Third Bank: Keith Schlegel (Keith.Schlegel@53.com) 617-217-2211
Santander (formerly Sovereign Business Credit): Paul Kelly (firstname.lastname@example.org) 617-757-5623
U.S. Bank: Dan Corcoran (email@example.com) 617-603-6726
People’s United Bank: Matt Modlish (firstname.lastname@example.org) 603-334-6704
MCRC: Suzanne Dwyer (email@example.com) 617-536-3900