NEW VENTURES & INDUSTRY NEWS

NEW VENTURES

Grasshopper Bank Launches with Seasoned Leadership Team

Grasshopper Bank, a newly chartered national bank, has completed its private placement offering and the receipt of all final regulatory approvals for the bank to open for business.

The company raised approximately $116.2 million in its private placement offering, which followed an earlier seed round offering in which it raised $15 million in connection with the organization of the bank. At a combined capital raise of more than $131 million, this is believed to be the largest capital raise for a start-up bank in the U.S.

“With the approval of our national charter, Grasshopper is poised to deliver banking services custom-designed for today’s entrepreneurial companies and their venture capital backers,” said Judith Erwin, CEO of Grasshopper Bank.

Grasshopper Bank CFO Sangeeta Kishore is former executive vice president and CFO of Metropolitan Commercial Bank. Chief Technology Officer and Co-Founder Minerva Tantoco has held senior positions at UBS, Merrill Lynch and Fannie Mae and has served as the first chief technology officer of the City of New York. Albert Sun, chief credit officer, was most recently the CCO for East West Bank. Chief Risk Officer Sally Myers, has extensive CRO experience, most recently with Plaza Bank. Gary Blumenthal, COO, has held senior positions at UBS and Morgan Stanley.

Lead investors in the company’s private placement offering included Patriot Financial Partners III, funds and accounts advised by T. Rowe Price Associates, Endeavour Capital Advisors, funds managed and advised by FJ Capital Management and Hamilton Lane Advisors, on behalf of New York State Common Retirement Fund.


Burch to Lead Huntington New Medical Practices Unit

Huntington Bank launched a health care finance unit, dedicated to helping private health care and medical practices, to be led by David Burch. Burch joined Huntington from Bank of America. Huntington’s new practice finance team will focus on businesses with less than $20 million in yearly revenue, particularly dentists, physicians and veterinarians who seek to expand their practices and unlock long-term value.

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INDUSTRY NEWS

Tree Line Agents $82.3MM Facility for Ingenio

Tree Line Capital Partners served as lead arranger and administrative agent for an $82.335 million first lien credit facility for Ingenio. CVC Credit Partners participated in the facility, and Western Alliance Bank provided a revolving credit facility. Headquartered in San Francisco, Ingenio is an online platform that connects advice-seekers with coaches and advisors.

Rabobank Upsizes Dean Foods Revolver to $265MM

Dean Foods has successfully increased the company’s borrowing base availability to $265 million under its senior secured revolving credit facility by completing post-closing appraisal work. According to a related 8-K filing, Rabobank served as administrative agent for the transaction. PNC, ING, BMO Harris and CoBank were other lenders in the syndicate.

Monroe Supports Clearlake Acquisition of Dude Solutions

Monroe Capital acted as administrative agent on the funding of a $260 million senior credit facility to support the acquisition of Dude Solutions by Clearlake Capital Group. Other lenders participating in this transaction include funds and accounts under management by BlackRock Capital Investment Advisors, Owl Rock Capital, and Vista Credit Partners.

WfCF Agents ABL to Support Variant Equity Coach USA/Canada Buy

An affiliate of Variant Equity Advisors completed the acquisition of Coach USA and Coach Canada. Wells Fargo Capital Finance acted as administrative agent, lead arranger and book runner for the asset-based credit facility provided for the acquisition.

BDC Provides $10MM Facility for good natured Products

good natured Products has secured $10 million in growth capital from BDC Capital to further accelerate organic growth. The BDC financing will be drawn down in up to three tranches. The first tranche of $5 million is expected to be advanced to the company upon receipt of final TSX Venture Exchange approval regarding the related amendments to the company’s outstanding convertible debentures.

B3D Upsizes XpresSpa Facility to $7MM

XpresSpa Group has improved its capital structure and significantly strengthened its financial condition through a series of debt and equity transactions, including increasing its credit facility with B3D to $7 million.

FTI Consulting Expands Healthcare Restructuring Division

FTI Consulting has appointed Tensie Axton as a senior managing director in the Turnaround & Restructuring Services practice within the Corporate Finance & Restructuring segment. Axton, who is based in Houston, has served in various executive management positions, including chief financial officer in the healthcare and banking sectors, chief operating officer in the healthcare sector and vice president of Finance at a publicly traded manufacturing and distribution company.

BB&T and SunTrust to Rebrand as Truist

BB&T and SunTrust Banks will rebrand as Truist following the merger of the two banks. Truist will be the sixth-largest U.S. bank holding company serving more than 10 million households in the U.S. While the new names will be effective upon completion of the merger, clients will continue to be served post-closing under the BB&T and SunTrust brands for the near future. Over time following the closing, both the BB&T and SunTrust brands will be seamlessly transitioned to the full Truist client experience, products and services.

Jack in the Box Planning Refi

Certain subsidiaries of Jack in the Box intend to complete a refinancing of the company’s existing senior credit facility, which is comprised of a term loan and revolving credit facility, with a new securitized financing facility. Wells Fargo Securities arranged the facility.

SunTrust Downsizes NN Revolver to $110MM

NN, a diversified industrial company, amended its credit facility, reducing the amount available under the company’s senior secured revolver from $125 million to $110 million and increasing the consolidated net leverage ratios for quarterly periods ending on or after March 31, 2019. According to a related 8-K filing, SunTrust Bank served as administrative agent for the transaction.

Sun Life Provides Up to $80MM Facility to Pawnee Leasing

Sun Life Assurance Company of Canada closed a new funding facility with Pawnee Leasing, a subsidiary of the Chesswood Group. The new facility will finance Pawnee’s prime originations and provide additional annual funding for Pawnee of up to $80 million, with a cost of funds that are fixed at the time of each tranche.

EIB Provides $26.4MM Facility to Cubic Telecom

Cubic Telecom, a connectivity management supplier to the Internet of Things and automotive industries, has secured $26.4 million in new funding from the European Investment Bank, the world’s largest international public bank. The financing will support Cubic’s further development of its software connectivity platform – PACE – through investments in R&D. •