SR Alternative Credit provided $20 million in the form of a senior secured revolving-to-term credit facility to a specialty finance company that purchases and services seasoned subprime auto receivables backed by used vehicles. The facility is secured by a first lien perfected security interest in receivables originated by the borrower.

“We believe the subprime auto finance market continues to present attractive opportunities for experienced alternative credit providers, particularly where financing can be structured around seasoned collateral with payment history and strong structural protections. Our more than a decade of experience in this asset class gave us the perspective to evaluate the underlying collateral and structure a transaction that appropriately reflects the current market environment. We worked closely with the borrower to develop a customized financing solution that provides flexibility while maintaining strong collateral protection and alignment of interests among all parties,” said Peter Faigl, Chief Investment Officer at SR Alternative Credit.

SR Alternative Credit, LLC provides asset-based lending solutions to borrowers seeking $10 million to $50 million in financing. The firm structures senior secured debt in the form of term, draw down, and revolving-to-term facilities with terms of up to five years, loan-to-value ratios ranging from 35% to 85%, and collateral types include pools of loans or leases in the specialty finance sector, receivables, inventory, machinery, and equipment. As an SEC-registered investment advisor, we operate at the crossroads of investors seeking attractive risk-adjusted yields and emerging companies seeking capital for expansion, acquisitions, or growth.

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