Capstone Partner’s Debt Advisory Team advised on the closing of a $40 million senior secured revolving credit facility for XL Funding, LLC (XLF), the proceeds of which will be used to refinance existing debt and facilitate continued portfolio growth for the Company.
Based in Indianapolis, the Company makes short-term, inventory-secured floorplan loans to independent used car dealers which are used to purchase vehicles at wholesale auctions for subsequent resale to consumers. XLF provides floorplan financing in 13 states including Indiana, Illinois, Michigan, Wisconsin, Ohio, Pennsylvania, New York, South Carolina, Georgia, Florida, Texas, New Mexico and California. Capstone worked closely with XLF on all aspects of the financing, helping to structure, arrange, and negotiate the debt facility.
We are excited to have closed upon such a favorable credit facility with Wingspire Capital and look forward to working with our new lender. This credit facility will allow us to pursue new strategic growth opportunities in addition to continuing our strong growth with our sister auctions as part of the XLerate Group. We are also very pleased with Capstone’s execution and the favorable outcome of the debt financing process as they introduced us to a number of strong institutional lenders and provided us with strategic advice throughout the entire transaction process.
“XL Funding received significant interest from prospective lenders in the market who were generally attracted to the Company’s growth, the short-term nature of the Company’s loan portfolio, the low historical loan loss rate and the recession-resistant nature of XLF’s business model,” said Kent Brown, Managing Director at Capstone Headwaters in their Debt Advisory Group. “The financing provides the Company with a dedicated capital partner capable of funding XLF’s future portfolio growth and we are delighted to have played a part in supporting their continued success.”