News
Recent News
PITTSBURGH, June 1, 2009 –Steel City Capital Funding, a specialty finance company affiliated with PNC, and PNC announced today a $59.5 million financing package for the merger of Wilkinson Industries, Inc., which is a portfolio company of Buffalo Grove, Ill.-based Mid Oaks Investments LLC, and Dispoz-o Products, Inc.
The financing package, consisting of a $30 million revolving loan and a $29.5 million term loan, also provided for the capitalization of the merged company.
Wilkinson Industries, headquartered in Ft. Calhoun, Neb., is a leading manufacturer of foodservice containers and was responsible for introducing the first Swanson® TV dinner tray into the marketplace. The financing was sought to provide, in part, for the acquisition of Fountain Inn, S.C.-based Dispoz-o Products, a producer of premium disposable plastic cutlery, drinking straws and meal and dietary kits.
Going forward, the combined organization will serve the foodservice/restaurant, grocery, food processor, educational, institutional and healthcare markets.
“Even with the challenges of current debt market conditions, Steel City and PNC were able to efficiently deliver a senior financing package that offered the convenience of a ‘one-stop-shop’ on terms that were consistent with their initial proposal. Together, they provided the flexibility necessary to fund one of the largest mergers in the Chicago middle market this year,” said Dave Crouch, managing director for Mid Oaks Investments.
PNC loans are provided by PNC Bank, N.A., a member of The PNC Financial Services Group, Inc. (www.pnc.com). PNC is one of the nation’s largest diversified financial services organizations providing consumer and business banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management; asset management and global fund services.
Steel City financing is provided by Steel City Capital Funding, LLC, a joint venture in which a subsidiary of The PNC Financial Services Group, Inc. is an investor.
For more information, please contact Meghan Cole at (412) 762-5654.
PITTSBURGH, Feb. xx, 2009 -- PNC announced today a $38 million senior secured financing transaction for Randolph, Mass.-based Richelieu Foods, Inc. (RFI), a manufacturer and distributor of private label and branded food products. The funds consisted of a $21 million revolving credit facility, a $16 million term loan and a $1 million capital expenditure line. Steel City Capital Funding, LLC, a specialty finance company affiliated with PNC, provided a junior tranche within the senior term loan.
RFI sought the funds to refinance existing debt and a bridge loan, provided by equity sponsor Brynwood Partners, LP, used to finance the acquisition of the Sara Lee Salad Dressing business. The facility also provided for ongoing working capital and capital expenditure needs.
RFI manufactures and distributes private label and branded frozen pizza, pourables and meal solutions, to grocery chains and other retailers throughout the U.S. With headquarters in Randolph, Mass., RFI also operates three USDA organic certified food production facilities, located in Grundy Center, Iowa; Washington Court House, Ohio; and Beaver Dam, Wis.
“The acquisition of the Sara Lee Salad Dressing business demanded a tight deadline, adding to the complex financing needed to address Richelieu Foods’ multiple facilities. PNC was able to structure a hybrid financing arrangement to meet our unique borrowing needs within the timeframe we required,” said Michael Morin, chief financial officer, RFI.
Loans are provided by PNC Bank, National Association, a member of The PNC Financial Services Group, Inc.
Steel City Capital Funding financing is provided by Steel City Capital Funding, LLC, a joint venture in which a subsidiary of The PNC Financial Services Group, Inc. is an investor.
The PNC Financial Services Group, Inc., (www.pnc.com) is one of the nation’s largest diversified financial services organizations providing consumer and business banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management; asset management and global fund services.
For more information, contact Meghan Cole at (412) 762-5654 or by email at meghan.cole@pnc.com.
PITTSBURGH, Aug. xx, 2008 – Steel City Capital Funding (SCCF), a specialty finance company affiliated with PNC, announced today a $30 million cash flow financing package for Geotrace Technologies, Inc., a Houston, TX-based analytical services company for the oil and gas industry. The financing package consists of a $12 million revolving line of credit and an $18 million term loan. PNC Business Credit, the asset-based lending arm of PNC, is a participant in the financing package.
Geotrace Technologies utilizes proprietary software tools that integrate subsurface data to assist in the optimization of oil and gas production and the management of exploitation risk. Geotrace Technologies sought the funds to refinance existing debt and to finance the development of new data integration software.
“Since 2005, Steel City Capital Funding has provided middle market companies with the capital they need to grow their businesses, primarily offering junior-secured and turnaround financing, when other types of capital was difficult for a business to obtain in the traditional bank markets. However, we have responded to the turbulence in the credit markets today, offering a cash flow financing product designed around the specific needs of borrowers such as Geotrace,” said Brian MacConnell, president of Steel City Capital Funding.
Loans are provided by PNC Bank, National Association, a member of The PNC Financial Services Group, Inc. (NYSE:PNC)
The PNC Financial Services Group, Inc., (www.pnc.com) is one of the nation’s largest diversified financial services organizations providing consumer and business banking; specialized services for corporations and government entities, including corporate banking, real estate, and asset-based lending; wealth management; asset management and global fund services.
For more information, contact Gina Villiotti, PNC Corporate Communications, at 412-762-0539.
For more information about PNC, visit the Media Room at pnc.com. Keep up to date with RSS enabled press releases, media kits and contacts, fact sheets, bios and more.
Past News
SAN FRANCISCO, April 14, 2006—Golden Peak Equity, a private equity group based in San Francisco, selected PNC Business Credit, the asset-based lending arm of PNC Bank, National Association, for a $10 million senior-secured financing package that enable the partnership to purchase an industrial concern headquartered in the Midwest. Steel City Capital Funding, a division of PNC Business Credit, provided an additional $4 million second-lien loan as part of the transaction.
The senior-secured funding that includes a $7 million revolving line of credit and a $3 million term loan and facilitated the purchase of the point of interest and serves as a platform for Golden Peak’s investment within the acquisition’s target industry. The transaction, coupled with future purchases and expansion, will allow Golden Peak to execute on its strategy of being a major consolidator within this industry.
“PNC Business Credit and Steel City Capital Funding were extremely effective and timely in providing us with the financing to execute this transaction,” said John Esrey, partner of Golden Peak Equity. “We were in search of quick availability and flexible liquidity, and PNC stepped up and offered Golden Peak what was necessary.”
PNC Bank, N.A., is a member of The PNC Financial Services Group, Inc., one of the the nation's largest diversified financial services organizations providing consumer and business banking; specialized services for corporations and government entities including corporate banking, real estate finance and asset-based lending; wealth management; asset management and global fund services.
For more information, contact Amy Vargo, PNC Corporate Communications, at 412-762-1535..
PITTSBURGH, August 25, 2005 --Steel City Capital Funding, a division of PNC Business Credit, announced today the closing of its first deal as agent on a $3 million second lien term loan for Charlotte-based Hardwood Lumber Manufacturing. PNC Business Credit, the asset-based lending arm of PNC Bank, National Association, launched Steel City Capital Funding as its specialty finance company in July 2005. The $3 million second lien term loan was part of a larger financing package for a $22.5 million asset-based credit facility provided by PNC Business Credit.
Hardwood Lumber Manufacturing is a producer of Appalachian and Northern hardwood lumber that are distributed to domestic and international markets. Their principal product lines consist of cherry, hard maple, soft maple, red oak and yellow birch. Hardwood also sells veneer logs, green lumber and lumber by-products like pulpwood, wood chips and sawdust.
Because of the unique nature of the lumber industry, PNC Business Credit and Steel City Capital crafted a credit line permitting advances against prepaid private and government standing timber, which are secured by the assignment of the standing timber and timber contracts.
“PNC Business Credit and Steel City Capital Funding worked quickly and efficiently to meet my needs,” said David Marshall, president and chief operating officer of Hardwood Lumber Manufacturing. “We needed flexible financing based on unique assets—prepayments on standing timber contracts—and PNC and Steel City came through in record time, completing the deal from proposal to funding in about ten weeks.”
For more information, contact Michelle Meredith, PNC corporate communications, at 412-768-3711.
PNC Business Credit is the asset-based lending business operated by PNC Bank, N.A, a member of The PNC Financial Services Group, Inc., one of the nation's largest diversified financial services organizations, providing regional community banking; wholesale banking, including corporate banking, real estate finance and asset-based lending; wealth management; asset management and global fund services.
PITTSBURGH, July 12, 2005 -- PNC Business Credit, the asset-based lending arm of PNC Bank, N. A., announced today the creation of Steel City Capital Funding, a specialty finance unit providing second lien loans and turnaround financing for middle-market companies across the country.
“Recognizing the growing demand in the second lien market, PNC has launched Steel City Capital Funding to offer our customers a wider array of financing options to meet their funding needs,” said William Kosis, president of PNC Business Credit. “In addition to expanding our product set, Steel City Capital Funding provides another opportunity for us to leverage our core asset-based competencies to help more companies at various stages in their performance cycle.”
Steel City Capital Funding has already completed four second lien loans and two turnaround financing for middle-market customers across the country. “We’ve assembled a team of six senior asset-based professionals to launch this group with plans to expand,” said Brian MacConnell, who has assumed a leadership role as president of Steel City Capital. MacConnell joined PNC Business Credit in 1997 when PNC began offering asset-based loans under this name.
“Borrowers today have the need for additional, specialized financing. With the addition of Steel City Capital Funding, we can provide our customers with solutions to a wide range of funding needs,” said MacConnell.
Steel City Capital Funding is headquartered in New York City with additional offices located in Chicago, Los Angeles and Pittsburgh. The team is led by MacConnell and includes: David Mengel, national origination manager; Kevin Madigan, managing director; Ilan Yehros, managing director; James Torkelson, managing director; and Anthony Contrafatto, chief portfolio manager. For more information, contact Amy Vargo, PNC Corporate Communication, at 412-762-1535 or at amy.vargo@pnc.com.
PNC Business Credit is the asset-based lending arm of PNC Bank, N.A., a member of The PNC Financial Services Group, Inc. PNC is one of the nation’s largest diversified financial services organizations providing, consumer and business banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management; asset management and global fund services.