Encina Business Credit, LLC announced a recapitalization and a significantly expanded capital base provided by Barings LLC-affiliated funds along with participation by Encina management. This recapitalization provides liquidity necessary for Encina to expand its platform and footprint as a leading working capital provider in North America.
In conjunction with this recap, Encina has changed its name to Eclipse Business Capital, LLC (EBC).
EBC will remain headquartered in Chicago, with offices across the United States. It will continue to provide revolving lines of credit and term loans ranging in size from $10 million to $125 million which are secured by accounts receivable, inventory, machinery & equipment, and real estate.
Marty Battaglia, CEO of EBC, said, "Same people, same product and same solution-oriented approach. We will maintain the same disciplined and differentiated approach to ABL lending that has allowed us to scale our business to the level we have and continue to do so. We look forward to providing the same compelling value proposition under a new brand name."
Barings LLC, one of the world’s leading financial services firms, deployed funds managed by Barings including Barings BDC, Inc.
“Barings, Barings BDC and our affiliated funds are delighted to partner with EBC on this important next step in cementing EBC as a leading working capital provider in North America,” said Jonathan Bock, Chief Financial Officer, Barings BDC. “Marty, and the great team of working capital professionals at EBC, operate a best in class, solutions-oriented platform that meets the needs of many large and middle market businesses over market cycles. EBC’s deep relationships, strong credit culture, and market leading expertise combine well with Barings permanent capital base and its long-term investment approach.”
“This is an incredible milestone for us at EBC. While we are thrilled to become a part of Barings, the foundation and support we received from Encina Capital and Oaktree created an incredible springboard for our next growth phase,” added Battaglia. “The breadth and depth of Barings’ private credit team, combined with the strength, diversity and scale of resources available across the entire firm, creates a very exciting opportunity for our firm.”
Andrew Salter, founder and CEO of Encina Capital, commented, “In only five short years, Marty and his team have built a terrific platform that has differentiated itself through a consultative and solution-oriented approach to working with customers to help them achieve their objectives. I am grateful for the tremendous support that we’ve received from an affiliate of certain funds managed by Oaktree Capital Management, L.P. and our lender group, and I’m confident that EBC is well positioned for a highly successful next chapter with Barings as its partner.”
Wells Fargo Securities, LLC served as exclusive financial advisor to EBC. Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor to EBC. Keefe, Bruyette & Woods, Inc., a Stifel Company, served as exclusive financial advisor to Barings. Dechert LLP served as legal advisor to Barings.
EBC was founded in 2016 by an ABL team backed by Encina Capital and an affiliate of certain funds managed by Oaktree Capital Management, L.P. Since it was established, EBC has underwritten more than 70 transactions totaling over $1.7 billion in aggregate credit facilities. EBC has an experienced team of 47 professionals, located in Chicago, Boston, New York, Los Angeles, San Francisco, Houston, Charlotte and Fort Lauderdale.