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Asset Based Lending

 

 

  • We’ll help you find the best way to leverage your assets
  • It’s not always easy for a company to grow. Between ever-changing market conditions, increasingly savvy competition and other factors beyond your control, you may not always be perfectly positioned to fund your goals – even if every other aspect of your business is ready.
  • Our team of professionals will look at your company’s entire structure to determine the lending solutions that will help you seize your opportunities for growth, and address your day-to-day operating needs.

 


 

 


 

Best for

 

Businesses poised to grow – whether it’s through acquisition, a unique business opportunity or seasonal upswing – but require additional funding to make it happen.

 

  • Businesses going through a period of transition or change, including re-financing, succession planning or recapitalization
  • Asset-rich companies who wish to use the value of their assets to secure the financing they need
  • Organizations with strong management and a solid business plan who are moderately to highly leveraged
  • Businesses going through a period of transition or change, including re-financing, succession planning or recapitalization
  • Asset-rich companies who wish to use the value of their assets to secure the financing they need
  • Organizations with strong management and a solid business plan who are moderately to highly leveraged

Details

 

Our Asset Based Lending group provides mid-market private to large public companies with an alternative to traditional senior debt, which may be accessed along with, or instead of, subordinated debt and/or equity.

 

Through Asset Based Lending, the value of your company's assets give you the power to secure structured financing, generally with higher advance rates than loans normally made by banks:

Revolving lines of Credit

with advance rates, determined by your organization's assets

 

Term Loans

supported by machinery, equipment and real estate

 

Covenant-Light Structure

lower cost and fewer financial covenants than traditional senior debt

 

Capital Expenditure Loans

supported by newly purchased machinery and equipment


Portfolio

 

Find out how we have helped clients with solutions to address their operating needs and captialize on growth opportunities.

 

 

  • Turnaround $34MM Operating Facility Turnaround $34MM Operating Facility
    Well into the economic crisis, a business leader went in search of a lending partner. Thoroughly knowledgeable in the workings of Asset Based Lending, this CEO's primary criteria included consistency in the marketplace and ability to deliver the preliminary agreement intact.
    BMO ABL was awarded the mandate based on its reputation on both points, as well as its full service platform catering to both the company and the shareholders. With a foundation of trust laid, lending partner and company look forward to a long and fruitful relationship!
    Well into the economic crisis, a business leader went in search of a lending partner. BMO ABL was awarded the mandate based on its reputation, as well as its full service platform catering to both the company and the shareholders.
  • Refinancing $25MM Operating Facility Refinancing $25MM Operating Facility
    This savvy retailer was already an advocate of Asset Based Lending, recognizing the greater leverage that ABL lending values allowed them to access while freeing them of traditional financial covenant requirements. The Company awarded BMO the refinancing opportunity based on our uniquely customized solution: an ABL revolving line of credit, an un-margined Seasonal Facility, an un-margined Treasury Risk Management Facility, bundled with the most competitive Trade Finance and Cash Management products. This savvy retailer awarded BMO the refinancing opportunity based on our uniquely customized solution: an ABL revolving line of credit, an un-margined Seasonal Facility, an un-margined Treasury Risk Management Facility, bundled with the most competitive Trade Finance and Cash Management products.
  • Private Equity Sponsored Refinance $12.35MM Private Equity Sponsored Refinance $12.35MM Operating Facility
    This Ontario based manufacturer of telecommunication infrastructure had softer than expected financial performance which caused its incumbent lender to require additional shareholder injections. The equity sponsor wanted an alternate longer-term financing solution. BMO Asset Based Lending provided a credit facility to refinance the existing lender and provide for shareholder loan repayments. This stable structure provided flexibility for management to focus on increasing sales and executing their strategy. This Ontario based manufacturer had softer than expected financial performance, which caused its incumbent lender to require additional shareholder injections. The equity sponsor wanted an alternate longer-term financing solution. BMO Asset Based Lending provided a credit facility to refinance the existing lender and provide for shareholder loan repayments.
  • Growth and Recapitalization - BMO Agents $90MM Growth and Recapitalization – BMO Agents $90MM operating and term facilities
    This established Canadian subsidiary of a multinational company was experiencing sales growth in its various business operations worldwide, including its profitable steel service centres. As the business is commodity-based and cyclical, management felt conventional leverage covenants could hinder the company from accessing the increased working capital required during the low part of the cycle, despite having significant assets. BMO Asset Based Lending, as lead agent, structured the syndicated facilities with no leverage covenant, which provided a significant increase in availability resulting from high inventory and real estate values. The facility also enabled capital repatriation to the parent. The company is expected to achieve significantly higher return on equity under the new capital structure. This established Canadian subsidiary of a multinational company was experiencing sales growth in its various business operations worldwide. BMO Asset Based Lending structured syndicated facilities with no leverage covenant, which provided a significant increase in availability resulting from high inventory and real estate values. The facility also enabled capital repatriation to the parent.
  • BMO and Privatization - BMO Agents $70MM BMO and Privatization - BMO Agents $70MM
    Key management of this public company auto parts manufacturer sought to privatize the company through a leveraged management buyout. The company operates primarily in Canada and the United States and serves the OEM and aftermarket segments. BMO Asset Based Lending, as lead agent, structured the syndicated operating facility that offered limited financial covenants and provided the new entity with the financial flexibility required to achieve their goals Key management of this public company auto parts manufacturer sought to privatize the company through a leveraged management buyout. BMO Asset Based Lending, as lead agent, structured the syndicated operating facility that offered limited financial covenants and provided the new entity with the financial flexibility required to achieve their goals.
  • LBO & Turnaround LBO & Turnaround
    This late-stage turnaround company is a manufacturer of steel components. BMO Asset Based Lending provided leveraged acquisition financing supported by all of the company's assets, including real estate and machinery and equipment. This late-stage turnaround company is a manufacturer of steel components. BMO Asset Based Lending provided leveraged acquisition financing supported by all of the company's assets, including real estate and machinery and equipment.
  • Management Buyout Management Buyout
    The management of this profitable steel service centre sought to acquire the division, at the same time as the parent filed for Chapter 11 in the United States. BMO Asset Based Lending structured operating and term facilities, which together with BMO Capital Partners' $4,000,000 subordinated debt investment, assisted management in a leveraged buyout of the Canadian operations. The management of this profitable steel service centre sought to acquire the division, at the same time as the parent filed for Chapter 11 in the United States. BMO Asset Based Lending structured operating and term facilities, which together with BMO Capital Partners' $4,000,000 subordinated debt investment, assisted management in a leveraged buyout of the Canadian operations.
  • Rapid Growth Rapid Growth
    BMO quickly realized that a committed asset based facility was the most appropriate form of senior debt financing to accommodate this building products distributor with high leverage, rapid growth and a requirement to carry a significant amount of inventory throughout the year. The increased availability, gained by higher advance rates on inventory, from the asset based credit facilities enabled the customer to double their sales, well in excess of $100 million, and quadruple their profits within twelve months. BMO quickly realized that a committed asset based facility was the most appropriate form of senior debt financing to accommodate this organization with high leverage, rapid growth and a requirement to carry a significant amount of inventory throughout the year. The increased availability enabled the customer to double their sales, well in excess of $100 million, and quadruple their profits within twelve months
  • Restructuring Restructuring
    This high volume, low margin specialty distributor was faced with increasing debt primarily due to fixed overheads, after a downturn in the market it serves. The resulting high leverage strained the relationship with its senior debt lender. BMO Asset Based Lending restructured an operating facility that replaced leverage covenants with a focus on the underlying value of the collateral. This high volume, low margin specialty distributor was faced with increasing debt primarily due to fixed overheads, after a downturn in the market it serves. The resulting high leverage strained the relationship with its senior debt lender. BMO Asset Based Lending restructured an operating facility that replaced leverage covenants with a focus on the underlying value of the collateral.
  • Succession Succession
    The founding shareholders of this food distributor had grown the company to over $150 million in revenues and were at the point where they wished to retire and withdraw their equity from the company. The succession plan was to sell the company to existing senior management; however, they lacked the financial resources to complete the transaction. By leveraging up the accounts receivable and inventory, beyond the levels that are offered by conventional banking facilities, BMO Asset Based Lending structured facilities that permitted the succession plan to become reality. The founding shareholders of this food distributor had grown the company to over $150 million in revenues and wished to retire and withdraw their equity from the company. The succession plan was to sell the company to existing senior management, but they lacked the necessary financial resources. By leveraging up the accounts receivable and inventory, BMO structured facilities that permitted the succession plan to become reality.

Contacts / Our team

 

Andre Salvi,
Managing Director & Group Head – Asset Based Lending
Andre.Salvi@bmo.com | (416) 643-4414

 

Andre has over 19 years of experience in investment banking, private equity and mezzanine financing, emerging payments, partnerships and strategic investments for Bank of Montreal (BMO) and is currently Managing Director and Head of Asset Based Lending, Corporate Finance Division. Prior to this role, he was Managing Director, BMO Partners, which is an enterprise wide group focused on developing partnerships to help drive innovation and accelerate business outcomes across BMO.

Andre started with BMO in 1997in the Diversified Industries group at BMO Capital Markets, where he worked on a variety of assignments across several industries, including initial public and secondary offerings, as well as public and private merger and acquisition mandates. Andre joined BMO Capital Partners in 2010 and originated, structured and executed a number of investments in a variety of sectors and has extensive experience working closely with companies throughout all the stages of a relationship and lifecycle.

Andre has an MBA (with distinction) from the Rotman School of Management (U of T), an Honours Bachelor of Business degree from Wilfrid Laurier University, and is a CFA Charterholder.


Shane Bradley,
Senior Director – Ontario & Atlantic
Shane.Bradley@bmo.com | (416) 867-5245

 

Shane has over 10 years of experience in corporate finance, focusing on both Cash flow and Asset Based Lending. Shane has expertise in a variety of areas including portfolio management, mergers & acquisitions, balance sheet refinancing, and large syndicated transactions. Shane is currently a Senior Director in BMO’s Asset Based Lending group, and is focused on developing new relationships in the Ontario region.

Shane began his career working with GE Capital where he spent eight years in various roles spanning across equipment finance and corporate finance, working in both sales and risk capacities. Shane joined the Bank of Montreal in 2016 and managed a portfolio of accounts whose credit facilities spanned between $10 million to $375 million.

Shane has an MBA from the Lazaridis School of Business and Economics (Wilfrid Laurier), and a Bachelor of Commerce degree from Laurentian University.


Karen Patey,
Managing Director – Ontario & Atlantic

Frederick Giraud,
Managing Director – Quebec

Offices / Locations

 

 

Toronto Head Office
First Canadian Place
100 King Street West, 18th Floor
Toronto, Ontario
M5X 1A1

Montreal
105 rue Saint-Jacques
3rd Floor
Montreal, Quebec
H2Y 1L6

Calgary
First Canadian Centre
350-7th Avenue S.W., 9th Floor
Calgary, Alberta
T2P 3N9

Vancouver
First Bank Tower
595 Burrard Street, 6th Floor
Vancouver, British Columbia
V7X 1L7