Old Hill provided a $10 million senior secured revolving-to-term facility to an Australian lender focused on providing lines of credit and fully amortizing loans to small and medium-sized enterprises. The facility is secured by a first lien perfected interest in a pool of receivables originated by the borrower.

“We operate in a segment of the lending market that requires specialized knowledge; a segment that is being neglected by large traditional banks due to post-crisis regulatory constraints. The firm’s experience in the asset class and the asset-based lending (ABL) sector in general, allowed us to execute on a transaction that offered a flexible financing solution for the borrower that was not available from traditional lenders.

We worked very closely with the borrower to craft a custom transaction, secured by strong collateral, which aligned the interests of both parties” said Peter Faigl, Senior Portfolio Manager at Old Hill.

Historically, Old Hill provides asset-based lending solutions for borrowers seeking $5 to $25 million in financing. The firm structures senior secured debt in the form of term, draw down, and revolving-toterm facilities of up to five years and loan-to-value ratios generally not exceeding 85%. Collateral types include pools of loans or leases (specialty finance), receivables, inventory, machinery, and equipment.