Astonishing Growth Cap & ABL Deals from Last Week: Generate Capital $1.2 Billion, Pivot Energy $450 Million, New Day Healthcare $125 Million

Good Morning Everyone

Let’s uncover last week’s $2B+ deals that are reshaping lending dynamics, with Generate Capital's $1.2B sustainability-linked facility leading a wave of innovative structures. I reveal why traditional asset-based metrics are being redefined and how "hybrid-collateral" approaches are emerging. Learn what JPMorgan, Goldman Sachs, and First Citizens' latest deals tell us about the future of secured lending.

Inside this issue, all last week’s top Growth Cap & ABL deals plus:
🌟 Why ESG metrics are becoming surprising value drivers in credit decisions
🎯 How specialized sector expertise is enabling more flexible terms
💡 The unexpected way traditional lenders are competing with alternative financing

Let’s dive in.

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📊 By the Numbers

Top Growth Cap/ABL Lenders
J.P. Morgan, First Citizens Bank, BMO Capital Markets, Scotiabank, Truist Bank, City National Bank, Royal Bank of Canada, Bank of America, Mizuho, Morgan Stanley, Barclays, Citi, Goldman Sachs, Nomura, Southern Bancorp, ATLAS SP Partners, Bank United, Comerica, Cadence Bank, Capteris, Great Rock Capital, Silicon Valley Bank, Mountain Ridge Capital, Whitebox, SLR Digital, and Bank of Ann Arbor.

Largest single deal: Generate Capital's $1.2 billion revolving credit facility and term loan

Number of states involved: 14

Sectors financed: Renewable Energy, Healthcare, Technology, Manufacturing, Construction, Staffing, Bioplastics, and Transportation

Revolving Credit Facilities:
◾ Generate Capital secured a $1.2 billion revolving credit facility from a consortium led by J.P. Morgan, fueling their sustainable infrastructure projects.
◾ Reed's Inc. obtained a $10 million revolving credit facility from Whitebox Advisors, enhancing their liquidity to meet market demand.
◾ Danimer Scientific landed a $20 million revolving credit facility from Mountain Ridge Capital, supporting growth in renewable plastics.

Debt Warehouse Facility:
◾ Pivot Energy closed a $450 million debt warehouse facility led by First Citizens Bank and ATLAS SP Partners, propelling the development of 300 MW of solar projects across nine states.

Senior Secured Loans:
◾ New Day Healthcare received a $125 million senior secured loan from First Citizens Bank Healthcare Finance, facilitating debt refinancing and multiple acquisitions.
◾ ACMS Group was granted a $25 million senior secured loan by Concord Financial Advisors, expanding their credit capacity to support rapid growth.

Exit Financing:
◾ Basic Fun! secured $50 million in exit financing from Great Rock Capital, boosting liquidity following a strategic restructuring.

Capital Lease Facility:
◾ A specialty transportation company obtained a $60 million capital lease facility from Capteris, financing acquisitions and fueling expansion plans.

🏆 Winners
◾ Renewable Energy Developers: Pivot Energy's success in securing innovative warehouse financing
◾ Healthcare Services Platforms: New Day Healthcare's acquisition-focused facility
◾ Project Finance Lenders: Innovation in warehouse facilities
◾ Sustainability-Focused Lenders: Generate Capital's successful syndication

❌ Losers
◾ Cyclical Manufacturing Companies: Higher scrutiny on working capital needs
◾ Traditional Retail Companies: Limited appetite for inventory-heavy businesses
◾ Traditional ABL Lenders: Competition from structured products
◾ Regional Banks: Limited capacity for large, complex deals

Last Week’s Analysis
STRENGTHS 👍️
◾ Strategic Technology Integration Multiple deals showcase sophisticated combinations of revolving facilities, term loans, and restructuring components, demonstrating market adaptability (E.g., Reed's: $10M revolver + note restructuring; Pivot Energy: $450M warehouse + structured equity JV)

OPPORTUNITIES 🤝
◾ Alternative Asset Monetization Growing acceptance of non-traditional collateral types creating new lending opportunities (E.g., Renewable energy credits, software ARR, carbon offsets becoming viable security)

📝 Tips For Borrowers

◾ Consider sustainability-linked pricing mechanisms as a tool for rate optimization, not just ESG compliance
◾ Explore warehouse facilities (with built-in flexibility for asset types and growth paths) as alternatives to traditional term loans, particularly for project-based businesses. The key is to negotiate expansion options upfront when leverage is highest
◾ Consider multiple tranches with different rate structures to optimize the overall cost of capital
◾ When approaching lenders, target their sector-specific groups. They often have more flexible terms and higher hold levels for sectors they understand deeply.

💡 Financing & Referral Opportunities for Brokers & Lenders

Locations: San Francisco, Denver, Dallas, Chicago, Boca Raton, New York, Indianapolis, Philadelphia, Little Rock, Roseville

Broker Opportunities
◾ Boutique ESG consulting firms that work with middle-market companies
◾ Consultants specializing in healthcare IT, industrial automation, and renewable energy tech
◾ Dealers in renewable energy equipment, industrial automation, and sustainable packaging

Lender Financing Opportunities
◾ Companies that provide performance monitoring, maintenance, and optimization services for solar and wind installations (E.g. Raptor Maps, AlsoEnergy, Power Factors)
◾ Firms that help healthcare providers integrate and optimize their technology stack (E.g. CareCloud, DrFirst, PointClickCare)
◾ Companies that help traditional industrial businesses modernize their operations through automation and data analytics (E.g. Automate America, Applied Manufacturing Technologies, JMP Solutions)

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MARKET ANALYSIS

🌱 The ESG Arbitrage
Generate Capital's $1.2B facility reveals a sophisticated play beyond simple ESG compliance. The sustainability-linked pricing adjustment isn't just window dressing—it's creating a new form of margin enhancement. The participation of 13 traditional lenders, including JPMorgan and Goldman Sachs, signals that ESG metrics are becoming a proxy for operational efficiency rather than just environmental compliance. The real innovation here isn't the green aspect—it's creating a new pricing mechanism that could reshape how covenant packages are structured.

🧩 When Silos Create Synergy
First Citizens' strategy across multiple deals (Squire Technologies, New Day Healthcare, Pivot Energy) reveals an unexpected truth: highly specialized lending enables more integrated financing solutions. Lenders can offer flexible terms while maintaining risk controls by deeply understanding sector-specific dynamics—like New Day's Medicare reimbursement cycles or Squire's FinTech compliance requirements. This "specialist generalist" approach is rewriting the rules of relationship banking.

🌐 The Network Effect of Necessity
Compressed margins aren't just pushing companies toward alternative lenders and creating entirely new financing ecosystems. Pivot Energy's combined warehouse and tax equity structure demonstrates how constraints breed innovation. This deal effectively creates a mini-market where construction finance, tax equity, and takeout financing coexist within a single facility—a model that could revolutionize project finance beyond renewable energy.

🎯 When Broad Terms Enable Specific Solutions
The trend toward seemingly broader, more flexible facilities (like New Day Healthcare's $125M credit line) enables more precise capital deployment. By building optionality into the base facility, lenders are creating "precision through flexibility"—allowing borrowers to fine-tune their capital usage while maintaining structural protections. This precision paradox is particularly evident in facilities supporting acquisition strategies, where the unknown specifics of future targets require highly specific optionality today.

New Loan Programs
◾ Tarabut & Geidea partner to provide financing to Saudi SMEs Read
◾ Qatari bank unveils green financing for electric-hybrid cars Read

😲 Didn’t see that one coming

◾ Goldman Sachs loses $900M as as Sweden's Northvolt files for bankruptcy, in blow to Europe's EV ambitions Read
◾ Spirit Airlines files Chapter 11 and enters a restructuring support agreement Read
◾ Barone declares bankruptcy for a recently developed Long Island City office building valued at $315M Read
◾ Goldman Sachs to foreclose on a $302M loan tied to Columbia Property Trust Office Read
◾ JPMorgan files a £21.5M lawsuit over precious metals warehouse flaws Read
◾ Young Thug reportedly defaulted on a $16M loan after making $16M from pub deal Read
◾ Polter hit by a flash loan attack, resulting in a 24-year sentence for the scammer Read
◾ Alexander Brothers claim Side manufactured a loan default Read

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