This week we chat with Ron Kubick, Managing Partner and founder of Cadence Credit Partners, an independent capital markets advisory firm that provides middle market companies (public, private, and sponsor owned) with capital markets advisory expertise when companies seek financing from traditional or alternative credit providers.
The Lead Left: Ron, what type of companies are your best clients?
Ron Kubick: Companies in transition. I specialize in advising companies that don’t fit a very tightly defined credit profile or qualify for regular way financings, even asset-based loans now need to pass internal risk rating models that vary from bank to bank before being considered for credit approval. Every regulated bank seems to want to do what is essentially investment grade ABL – that’s oxymoronic, like ‘jumbo shrimp.’ The old ABL product doesn’t exist anymore when it was all about collateral and at least 12 months of liquidity runway. If you are funded via a depository base that means you’re regulated, which means risk rating models and SNC discussions.