New Relationship for the Bank

Facilitating a High-Value Sponsor Acquisition

CollateralEdge enabled a Texas commercial bank to finance an $11M acquisition for an industrial products company, securing a new sponsor relationship.

Acquisition Financed:

$2.4M collateral provided.

New Sponsor Relationship:

Bank gained a valuable client.

Long-Term Growth:

Positioned for future acquisition financing.

Challenge, Solution & Results Challenge

This commercial bank specializes in mid-market financing, with a strong focus on supporting private equity sponsors and facilitating acquisitions.
  • Key challenges
The bank faced underwriting difficulties due to the time-sensitive nature of the acquisition and limited client history.
  • Time Sensitivity:

The acquisition required immediate funding to avoid losing the deal.

  • New Relationship:

No prior banking history with the sponsor.

  • Risk Exposure:

Potential for future acquisitions heightened risk.

  • Solution
CollateralEdge provided a tailored collateral package.
  • Collateral Letter of Credit:

A $2.4M letter of credit issued at deal close.

  • Dynamic Platform:

CollateralEdge’s platform allowed the bank to model various capital structures instantly.

  • Flexible Coverage:

Terms included optional extensions for future acquisitions.

  • Results
  • Acquisition Closed:

The deal was completed on time, securing new deposits and fee income.

  • Expanded Portfolio:

The bank gained a key sponsor client with significant future growth potential.

  • Enhanced Credibility:

Successfully executing this complex transaction strengthened the bank’s market reputation.

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New Relationship for the Bank

CollateralEdge enabled a Texas commercial bank to finance an $11M acquisition for an industrial products company, securing a new sponsor relationship.