Coming out on top in a highly competitive request for proposal (RFP), GE Capital Solutions, Franchise Finance acquired a franchise loan portfolio owned by Textron Financial Corporation, a Textron Inc. (NYSE: TXT) company. Impressed by the growth opportunities included in the portfolio, GE Capital Solutions, Franchise Finance acquired 16 borrower groups and 53 loans. Terms of the deal were withheld.
Consisting of a number of blue chip franchises, including Arby’s, Applebee’s, and KFC, the portfolio is mainly comprised of mortgage and equipment loans. While commercial financier Textron Financial is based in Providence, R.I., it does business on five continents.
“The portfolio we acquired matches our growth pattern. By financing healthy loans such as these, we continue on the path of steady growth,” says Jeff Smith, senior vice president, GE Capital Solutions, Franchise Finance. “The entire portfolio is attractive for a number of reasons. Not only are the concepts impressive, but so is their performance. Also, many of the loans involve national franchises and are real-estate based, which complements our experience with the restaurant industry. This makes them a perfect addition to our portfolio.”
The advantage for GE Capital Solutions, Franchise Finance lays in its ability to formulate terms and a financing structure that appealed to Textron Financial. The lender was able to move quickly to close the deal, reducing execution risk for Textron Financial. Due to prior working relationships with Textron Financial, GE Capital Solutions, Franchise Finance understood the overall loan and underwriting processes of Textron.
“We were familiar with Textron Financial, having worked with them since 2002,” says Smith of the transaction’s development. “Though there was a competitive RFP, we have an existing infrastructure and knowledge of the Textron Financial process, which gave us a definite edge in quickly closing the deal. Our knowledge of the restaurant industry helped us create a bid and lending structure that matched their needs. We are very comfortable working across the board with them.”
Across the board, and across the border, GE Capital Solutions, Franchise Finance divisions in Canada also worked to secure portions of the deal via Textron Financial’s Burlington, Ont. location.
“This portfolio holds great value to us. It was important to add it to our repertoire and we moved quickly to complete the deal,”says Smith, who noted that Textron Financial alerted his company to the opportunity.
“That’s the result of a solid business relationship,” he says.
About Textron Financial Corporation
Textron Financial is a diversified commercial finance company with $10 billion in managed receivables. It has core businesses in Aviation Finance, Asset-Based Lending, Distribution Finance, Golf Finance, Resort Finance, and Structured Capital. Textron Financial also provides financing programs for products manufactured by its parent company, Textron Inc. Additional information about the company is available at www.textronfinancial.com.
About GE Capital Solutions, Franchise Finance
GE Capital Solutions, Franchise Finance is a leading lender for the franchise finance market via direct sales and portfolio acquisition. With more than 20 years of experience and $11 billion in served assets, we serve more than 6,000 customers and more than 20,000 property locations, primarily in the restaurant, hospitality, branded beverage, power sports, and automotive after-market industries. We offer customers access to capital with a menu of products featuring flexible structuring, including financing for acquisitions, refinancing, construction of new units, and remodels for single- and multi-unit operators/chains. More information is available at www.gefranchisefinance.comor by calling toll-free 866-GET-GEFF (438-4333).
GE Capital Solutions provides leasing, lending, and capital investment products and services to help business customers grow. It has more than $90 billion in assets, serves more than a million clients around the world, and is headquartered in Danbury, Connecticut, USA. For more on GE Capital Solutions, go to www.ge.com/capitalsolutions.
GE (NYSE: GE) is Imagination at Work — a diversified technology, media, and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.
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