Tag Archives | underwriting

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There be monsters? Middle Market Leveraged Lending and the SNC Review

Six years past the onslaught of the Great Recession, a knot of on-lookers remains committed to specters and bogeymen in the leveraged loan market. Undeterred by contrary empirical evidence and low default rates, torchbearers have tried (thus far, in vain) to enumerate any swath of banks that required rescue due to leveraged lending to commercial and industrial operating […]

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The Middle Market has a Weight Problem

Beneath the screeching Klaxon alarms, raised by frenetic media on all things related to deal making, lies a deep – and historically vibrant – Middle Market. Undaunted, intrepid reporters dash through press rooms clutching another article decrying companies “laden with debt”, “leverage limits”, “criticized assets” of the if-it-bleeds-it-leads meme – while a vast sector of the economy […]

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Culture and Investment: Winning Platform or Ship Wreck?

I had the pleasure of seeing Biz Stone, co-founder of Twitter, at a recent conference in Las Vegas. While he and I are wired quite differently (maybe a reason his net worth has a ‘B’ in it), he noted several compelling tenets and principles he used to drive the cultural development of Twitter. And we […]

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Commercial Banks and Leveraged Lending: Why, It’s a Day at the Beach!

While the death of commercial banks in the leveraged, sponsor-backed sector is a bit exaggerated – it’s tough to argue that the industry is not in the Intensive Care Unit. Recent reports from S&P Capital IQ show that U.S. banks’ share of leveraged lending in the middle market has fallen to 9% in 2013 – […]

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The Peril of Pytr Prynciple and the Bank Meeting

We received such fascinating feedback on our post on relationships in commercial banking being a double-edged sword (see, “The Most Expensive Word in Banking? ‘Relationship’”) that we wanted to capture it in a follow on piece. Based on many of the war stories we heard, the topic touched close to home for many. Most wondered […]

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The Most Expensive Word in Banking? “Relationship”

Commercial bankers, especially those in the core and lower middle market, face so many obstacles to growth and profitability – from a looming regulatory environment to nimble, creative non-bank competitors – that it’s a wonder some don’t throw their hands up in despair and go fishing. But there is hope for those willing to address […]

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The CIM…sales document or due diligence?

In larger middle market transactions we typically see senior and junior debt facilities with multiple lenders. Given tight timeframes in most LBO transactions, a delicate balance is struck between how much reliance can be placed on the confidential information memorandum (the “CIM”, also known as a bank book, etc.) and how much will be invested […]

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