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👑 JPMorgan's Double Crown: From $700M Revolver to $2.7B Rail Giant

👑 JPMorgan's Double Crown: From $700M Revolver to $2.7B Rail Giant

[4 Minutes Read] Plus, Trump Tariffs Got You Down? HSBC's New Bailout Plan

Bridge Loan Guy
May 14, 2025

Good Morning Everyone

Welcome to your weekly Growth Cap and ABL market update. We're breaking down the biggest deals and revealing the lending criteria that's driving them.

🏢 Domestic & Global Deals
🏆 Winners & Losers
🔦 Deal Spotlights
👤 Lender Profiles
🤝 Broker & Lender Opportunities
💡 Alpha Trend
📝 New Loan Programs
😲 Didn’t See That Coming

Let’s dive in.

Bridge Loan Guy
Top Loans of the Week

Largest US loan deal: Wabtec Corporation $2.725 billion refi (term loan & revolving credity facility) from PNC Bank and a consortium of 8 banks

Largest Global loan deal: Wagestream £300 million growth cap loan from Citi

Lender of the Week: J.P. Morgan (two weeks in a row) was involved in mega deals—the lead arranger for CSW's $700 million revolver and a syndicate member of the $2.725 billion Wabtec loan.

🏢 TOP GROWTH CAP & ABL DEALS

Domestic Market
◾ PNC leads $2.7B mega-refinance for rail giant Wabtec Corp – Link
◾ JPMorgan upsizes CSW Industrials to $700M revolver – Link
◾ Citizens Bank refinances VSE Corp with $700M package – Link
◾ CDPQ/Nuveen back Redaptive with $650M energy facility – Link
◾ HSBC provides $100M letter of credit to Doral Renewables – Link
◾ Beyond Meat secures $100M from Ahimsa Foundation affiliate – Link
◾ SLR Digital Finance backs Infillion with $45M receivables facility – Link
◾ CIT Northbridge finances ADC Solutions with $40M facility – Link
◾ MidCap Financial closes $40M for Bedrock Manufacturing – Link
◾ Bridge Bank provides $20M to digital accessibility firm AudioEye – Link

Global Market
◾ Citi £300M for Wagestream's workplace loans expansion – Link
◾ Shenzhen Financial Leasing €57.3M for Seacon Shipping's seven vessels – Link
◾ Zenobē CA$48M for 7Gen's 500 electric vehicles and infrastructure – Link

🏆 WINNERS & LOSERS

Winners	Losers
⚡ Energy/Infrastructure Tech	📉 Traditional Asset-Based Players
🚂 Transportation/Rail	🛍️ Sub-Scale Consumer Brands
🏭 Industrial Manufacturing	🏦 Non-Specialized Mid-Market Lenders

🔦 DEAL SPOTLIGHT

Beyond Meat $100M Senior Secured Financing

Loan Amount: $100 million
LTV: Likely 50-60% (*estimate based on plant-based food industry standards)
Interest Rate: 12.0% pre-Feb 2030, 17.5% thereafter (significantly above market, reflecting speculative nature)
Loan Term: Corporate senior secured debt. Initially to Feb 7, 2030, extendable to May 7, 2035
Business Type: Pioneer in plant-based meat alternatives
Borrower Profile: Nasdaq-listed pioneer in plant-based meat alternatives, facing margin pressure but maintaining brand strength
Unique Feature: PIK (Payment-in-Kind) interest structure with warrant coverage giving the lender up to 12.5% equity
Strategic Significance: This represents a classic "distressed growth" package - high rates reflect risk, but warrant coverage gives the lender upside if Beyond Meat's turnaround succeeds. The extendable maturity is essentially a built-in "second chance" option, acknowledging the company might need more runway than initially planned. It's the financing equivalent of a parachute with a backup chute.

*Note: Terms are educated estimates based on market conditions and comparable transactions.

👤 LENDER PROFILES

Digital Media Finance Specialist
Focus: Specialized receivables-based lending for digital media and technology companies seeking alternative to traditional bank financing
Interest Rate: Base + 400-800 bps (estimated based on receivables quality and business model)
Geographic Scope: National, targeting digital media hubs in NY, CA, and major metro areas
Deal Size: $5M-$250M asset-backed facilities
Minimum Revenue: $10M-$500M with focus on recurring revenue models
Industries: Digital advertising, media technology, publishing, ad networks, creative agencies
Deal Structures: Enhanced receivables-based facilities with flexible advance rates (up to 80-90% of qualified receivables)
Key Differentiator: Deep tech sector expertise with proprietary underwriting models tailored for digital businesses with intangible value drivers

Struggling with your deal?
⮞ Get direct introductions to top lenders that can help you close your time-sensitive deals
⮞ Reach out to [email protected]

🤝 Top Location Opportunities (Brokers & Lenders)

Austin, Texas – AI & Semiconductor Ecosystem Support Services
Secondary Market: San Antonio, TX or College Station, TX
Competitive Position Analysis: Early-mover GC/ABL providers specializing in tech and advanced manufacturing can establish strong relationships. Competition will come from national tech-focused lenders and local Texas banks, but specialized non-bank lenders offering flexibility can carve a niche.
Regulatory Impact Analysis: Federal CHIPS Act funding provides a positive backdrop. State and local incentives for tech and manufacturing are generally favorable in Texas.
Target Profile: Companies providing specialized software for chip design and AI model development, or advanced manufacturing equipment and materials specific to semiconductor fabrication.
Opportunity Window: 18-36 months

Bay Area, California – Next-Generation SaaS & Enterprise Software
Secondary Market: Sacramento, CA, or Reno, NV
Competitive Position Analysis: Highly competitive landscape with numerous VC firms and specialized tech lenders. Differentiation comes from deep sector expertise, flexible terms, and value-added services beyond capital.
Regulatory Impact Analysis: Data privacy regulations (e.g., CCPA/CPRA in California, GDPR impact for global reach) are critical. SEC focus on digital assets and potential AI regulation could be relevant for some SaaS niches.
Target Profile: B2B SaaS companies with demonstrated product-market fit, strong ARR growth, and high retention rates
Opportunity Window: 12-24 months

Boston/Cambridge, Massachusetts – Biotechnology & Life Sciences
Secondary Market: Worcester, MA, or Providence, RI
Competitive Position Analysis: Very competitive with specialized biotech VCs and healthcare-focused investment funds. ABL for MedTech/CROs/CDMOs may be less crowded. Lenders need deep scientific understanding or strong advisory networks.
Regulatory Impact Analysis: FDA approval pathways are paramount. Changes in drug pricing policies, IP protection laws, and NIH funding levels are key regulatory factors.
Target Profile: Biotech companies in Phase II/III clinical trials, or Specialized MedTech manufacturers with strong order books or valuable IP/equipment
Opportunity Window: 12-30 months

Want more location leads?
⮞ Get more “blue-ocean” location opportunities to help you uncover more deals
⮞ Reach out to [email protected]

💡Alpha Trend 1: Digital Infrastructure & AI-Driven Growth Capital Arbitrage
Primary Driver: The explosive growth in AI infrastructure demand (global market projected to surpass $240B) has created severe bottlenecks in power capacity and specialized facilities [Coherent Solutions]. With some companies earmarking 20% of 2025-2027 tech budgets for AI [Coherent Solutions], traditional financing structures can't keep pace.
Secondary Factor: Power constraints are creating a fundamental ceiling on expansion—US data centers could consume 7.5% of total electricity by 2030 [Brightblio]. This power-infrastructure gap, evidenced by Microsoft's 53% capex increase focused specifically on AI infrastructure [Rand], creates a financing opportunity hiding in plain sight.
Impact Timeline: Very high magnitude with 3+ year sustainability as AI adoption accelerates across industries.

The Hidden Alpha
What most miss: The intersection between real asset security (power infrastructure) and technology growth is creating a unique arbitrage opportunity where lenders can achieve tech-like returns with infrastructure-like security through specialized underwriting models for power-contingent AI assets.
Return Potential: 200-300 bps higher risk-adjusted returns vs. traditional infrastructure financing
Performance Driver: AI-powered enterprises respond 50% faster to market changes [Morningstar], strengthening debt service capability
Competitive Advantage: Structural power constraints [Aberdeen Investments] create lasting expertise barriers

Geographic Focus
Prime Markets: Northern Virginia (Power-enabled Edge Centers), Phoenix (AI Cooling Tech), Dallas-Fort Worth (Hyperscale Campus)
Emerging Opportunities: Columbus (Renewable-Powered Infrastructure), Salt Lake City (Water-Efficient Computing), Atlanta (Edge Computing)

Action Framework
For Sponsors: Develop hybrid capital stacks combining standard debt with milestone-driven mezzanine facilities. Prioritize sites with pre-secured PPAs to enhance underwriting. Key metric: PUE below 1.2.
Potential partners: Macquarie Capital, Generate Capital

For Brokers: Target mid-market AI infrastructure players ($20-100M financing needs). Focus on "picks and shovels"—cooling technology providers, specialized semiconductor manufacturing.
Target companies: Cerebras Systems, SambaNova Systems

For Lenders: Structure 60-70% LTV facilities against hard assets with tech-milestone covenants. Expand collateral definitions to include power contracts and customer commitments.
Borrower profiles: Scale AI, Graphcore

Decision Accelerator:

Revenue-Power-Capital Ratio (RPCR)

(MW of Power Secured × Years of Contract × Annual NOI/MW) ÷ (Total Project Cost in $M)

Simplified: (Total Expected NOI over Contract Period) ÷ (Total Project Cost in $M)

When RPCR > 0.3, you've found gold. This metric combines the four critical factors most overlook, including profitability potential.

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📝 NEW LOAN PROGRAMS

◾ Monroe Capital, SMBC & MA Financial launch a $1.7 B middle market lending JV to underwrite U.S. private credit across industries. Read
◾ General Atlantic & UBS form a strategic partnership to scale bespoke private credit strategies globally. Read
◾ HSBC rolls out a Trump tariff financing product designed to help U.S. importers navigate evolving trade policy risks. Read

😲 DIDN’T SEE THAT ONE COMING

◾ Rite Aid files for second bankruptcy in two years, citing that their 'Buy One Get One Free' strategy now applies to bankruptcies UPI

Lastly, no content provided by Bridge Loan Guy or Loans, Lenders & Leverage should be considered tax, investing, or financial advice. This email and any other content we provide are for entertainment and education purposes only. We do not claim to provide tax, investment, financial, or other legal advice. Any content provided by Bridge Loan Guy or Loans, Lenders & Leverage is the personal opinion of our owners and/or staff – you should always conduct your own research