Finacity Corporation has increased a trade receivables securitisation to US$105mn for the US-based firm Manitowoc Company, a provider of lifting equipment for the construction industry.
The original facility US$60mn for Manitowoc was raised in 2005, funded by BMO Harris Nesbitt. At the end of 2006, this facility was replaced by a five-year US$90mn trade receivable securitisation facility funded via NordLB.
Under the terms of the transaction, Manitowoc was provided with cash proceeds of up to US$90mn through the ongoing purchase of receivables from certain domestic and Canadian accounts assigned from its domestic crane and foodservice operating subsidiaries.
This in turn has now been increased to US$105mn, again funded through NordLB. Speaking to GTR, Adrian Katz, Finacity’s chief executive officer, remarks: “Manitowoc’s business is doing very well, with a resulting increase in receivables. The securitization facility is very cost efficient in that we are facilitating an investment grade execution for a non-investment grade company. Thus, it makes sense for Manitowoc to maximise its liquidity, using its growing receivable portfolio as collateral.”