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Heritage Global Capital Extends and Upsizes Senior Funding Facility
Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
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Rhea-AI Summary
Heritage Global Capital (HGC), a division of Heritage Global Inc. (NASDAQ: HGBL), has successfully extended and increased its funding facility from $80 million to $200 million, now expiring on March 31, 2025. This $120 million upsizing enhances HGC's lending capacity to support anticipated growth, particularly as loan defaults are expected to rise due to the current economic climate. HGC specializes in flexible funding structures within the Accounts Receivable Management industry, positioning itself as a leading lender in this space.
Positive
Increased funding facility from $80 million to $200 million enhances lending capacity.
Extension of funding facility through March 31, 2025, provides more operational flexibility.
Positioning as a premier lender in the Accounts Receivable Management industry amid rising loan defaults.
Negative
None.
SAN DIEGO--(BUSINESS WIRE)--
Heritage Global Capital (“HGC”), a division of Heritage Global Inc. (Nasdaq: HGBL), specializing in flexible fundings for the Accounts Receivable Management “ARM” industry, announced today that it has extended and increased its funding facility with its existing senior lender. The amended facility, originally set to expire in 2022, now extends through March 31, 2025 and increases the facility size from $80 million to $200 million.
The funding facility was upsized by $120 million; this extension will provide HGC the capital suited to achieve its near-term goals. “This amended facility dramatically increases our lending capacity to support the growth opportunity in front of us as we anticipate continued increases in loan defaults given the current economic environment. We are eager to further our commitment to be the premier lender to the industry,” said Ross Dove, CEO of Heritage Global Inc.
Heritage Global Capital, LLC. (“HGC”) is a subsidiary of Heritage Global Inc. (NASDAQ: HGBL). HGC operates under the Financial Assets business unit and provides flexible funding structures for all asset classes while specializing in buyers acquiring financial portfolios. A customized one-stop credit solution strategized to deliver cost-effective debt capital, HGC lends to companies across a variety of asset classes and thrives on providing creative solutions to companies with non-traditional business models.
Heritage Global Inc. (“HG”) values and monetizes industrial & financial assets by providing acquisition, disposition, valuation, and lending services for surplus and distressed assets. This aids in facilitating the circular economy by diverting useful industrial assets from landfills and operating an ethical supply chain by overseeing post-sale account activity of financial assets. Specialties consist of acting as an adviser, in addition to acquiring or brokering turnkey manufacturing facilities, surplus industrial machinery and equipment, industrial inventories, real estate, account receivable portfolios, and intellectual property through its two business units: Industrial Assets and Financial Assets.
Forward-Looking Statements
This communication includes forward-looking statements based on our current expectations and projections about future events. For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. While the Company believes the forward-looking statements contained in this communication are accurate, these forward-looking statements represent the Company’s beliefs only as of the date of this communication, and there are a number of factors that could cause actual events or results to differ materially from those indicated by such forward-looking statements, including variability in magnitude and timing of asset liquidation transactions, the impact of changes in the U.S. national and global economies, and interest rate and foreign exchange rate sensitivity, as well as other factors beyond the Company’s control. Unless required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. For more details on factors that could affect these expectations, please see our filings with the Securities and Exchange Commission.
What is the new funding facility size for Heritage Global Inc. (HGBL)?
The new funding facility size for Heritage Global Inc. (HGBL) is $200 million, increased from $80 million.
When does the new funding facility expire for HGBL?
The new funding facility for HGBL expires on March 31, 2025.
What industry does Heritage Global Capital (HGC) operate in?
Heritage Global Capital (HGC) operates in the Accounts Receivable Management industry, providing flexible funding solutions.
How much was the upsized funding for HGBL's facility?
The funding facility was upsized by $120 million.
Why is the funding facility important for HGBL?
The funding facility is crucial for HGBL as it increases their lending capacity to support growth opportunities amidst expected increases in loan defaults.
