This week we continue our conversation with Jim Hudak, President, CIT Commercial Finance. Jim has been with CIT and predecessor companies (AT&T Capital, Newcourt, Tyco) since 1991. He has also run the Corporate Finance Group at CIT, which comprises leading industry verticals in Aerospace & Defense, Commercial & Industrial, Communications, Media & Entertainment, Energy and Healthcare. The group is dedicated to servicing the specialized financing and advisory needs of small- and middle-market companies in the U.S. and Canada. Second of two parts – View part one.
The Lead Left: What about hold levels? Is it mostly sponsored deals?
Jim Hudak: For ABL deals we can hold anywhere from $30 to $100 million. On the cash flow side, as a participant we’re probably going to stay in the $20 million range. As a lead we can hold $35 to $40 million. We’ll close a little long if we need to. And most of what we do on the cash flow side is sponsored. It’s mostly non-sponsored on the ABL front, particularly in sectors like energy, maritime, aviation, and media.
TLL: We know with Neil Wessan running capital markets you’ve got a seasoned pro. What’s the largest deal you’ve underwritten?
JH: Neil knows everyone in the industry. We’re aligned with experienced MDs. It’s not a generalist approach. This is similar in the entertainment sector. There are 8-10 banks that will do film financings. Our largest underwriting was a $334 million sole arranged financing for a data cloud company.