CIT Northbridge Serves as Sole Lead Arranger on $20 Million Credit Facility for Davey Coach Holdings, LLC

Rhea-AI Summary

CIT Northbridge Credit has arranged a $20 million senior lending facility for Davey Coach Holdings, a key player in shuttle bus services. This financing, aimed at refinancing existing debt and supporting future growth, underscores the resurgence of the travel industry post-pandemic. Davey Coach anticipates an uptick in demand for regional transportation solutions. The transaction highlights CIT's expertise in providing tailored financing solutions for middle-market companies like Davey Coach, which operates in a competitive sector.

Positive

• CIT Northbridge Credit arranged a substantial $20 million financing package for Davey Coach Holdings.
• The credit facility supports refinancing existing debt and facilitates future growth opportunities.
• The partnership signifies CIT's commitment to middle-market businesses, enhancing its market positioning.

Negative

• None.

NEW YORK, Feb. 14, 2022 /PRNewswire/ -- CIT, a division of First Citizens Bank, today announced that CIT Northbridge Credit, as advised by CIT Asset Management LLC, served as sole lead arranger on a $20 million senior lending facility for Davey Coach Holdings, a portfolio company of Progress Equity Partners and one of the nation's leading providers of new and used shuttle bus and rental services.

Headquartered south of Denver in Sedalia, Colorado, with additional branch locations in California and Indiana, Davey Coach provides customized solutions in the small and mid-size bus market, representing multiple manufacturer brands, many on an exclusive basis. The credit facility will be used to refinance existing debt, provide working capital and help finance future growth opportunities.

"As the travel industry rebounds from the pandemic, we expect to see an increase in demand for flexible and convenient regional transportation," said Mark Stenseth, president of Davey Coach. "We appreciate the expertise and agility of the CIT Northbridge team in arranging financing that will help us to meet the pent-up demand for shuttle bus sales and rental services."

"Davey Coach is a leading shuttle bus dealer and fleet rental service provider in the United States, and we're pleased to have worked closely with them to understand their business needs and develop a financing package that advances their goals," said Neal Legan, who leads CIT Northbridge.

CIT Northbridge Credit is a trusted financial partner supporting middle-market companies with a broad range of flexible asset-based debt solutions. A joint venture advised by CIT Asset Management, it provides revolving and term loan commitments from $15 million to $150 million to companies across various industries and business cycles, and serves primarily as sole lender, agent, club participant or co-lender.

About CIT
CIT is a division of First Citizens Bank, the largest family-controlled bank in the United States, continuing a unique legacy of strength, stability and long-term thinking that has spanned generations. Parent company, First Citizens BancShares, Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with more than $100 billion in assets. The company's commercial banking segment brings a wide array of best-in-class lending, leasing and banking services to middle-market companies and small businesses from coast to coast. First Citizens also operates a nationwide direct bank and a network of more than 600 branches in 22 states, many in high-growth markets. Industry specialists bring a depth of expertise that helps businesses and individuals meet their specific goals at every stage of their financial journey. Discover more at cit.com/firstcitizens.

MEDIA RELATIONS:
Lexa Tutela
212-461-5305
lexa.tutela@firstcitizens.com

 

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SOURCE CIT, a division of First Citizens Bank

FAQ

What is the significance of the $20 million credit facility for FCNCA?

The $20 million credit facility arranged by CIT Northbridge Credit is significant for FCNCA as it highlights the company's role in facilitating growth and refinancing for mid-sized businesses, reflecting a positive trend in the recovery of the travel industry.

How will the financing impact Davey Coach Holdings' operations?

The financing will help Davey Coach Holdings refinance existing debt and provide working capital, enabling the company to capitalize on increasing demand for shuttle bus services.

When was the credit facility for Davey Coach Holdings announced?

The credit facility for Davey Coach Holdings was announced on February 14, 2022.

What are the future growth opportunities for Davey Coach Holdings following this financing?

The financing allows Davey Coach Holdings to explore future growth opportunities, particularly in expanding their shuttle bus sales and rental services in response to increasing market demand.