Pasadena Private Lending Secures $50 Million Loan, Extends Credit Facility

Pasadena Private Lending Inc. has closed on a $50 million secured term loan with SLR Capital Partners while simultaneously extending its senior credit facility with East West Bank, the company announced Monday.

The non-bank lender, an affiliate of Pasadena Private Financial Group, will use the capital influx to grow its portfolio and capitalize on trends in the owner-guaranteed business loan market. As economic uncertainties surface and interest rates decrease, there is significant demand from lower-middle market companies to access floating-rate credit from creative and responsive non-bank lenders such as PPL.

East West Bank, which has been PPL’s senior lender since 2021, increased the company’s advance rate from 65% to 70% and extended the maturity date to July 2028 on its $75 million senior credit facility.

“We are excited to receive this influx of capital at a time when private credit is becoming commonplace and overtaking traditional banks as the engine of economic growth,” said Michael McAdams, CEO of PPL.

The company specializes in making owner-guaranteed business loans of $2 million to $10 million to lower middle-market companies with EBITDA of $1 million to $5 million. PPL focuses on companies controlled by successful entrepreneurs who are seeking to diversify their net worth, make an acquisition, buy-out minority shareholders or finance their growth.

“We welcome larger private credit brethren SLR to our capital stack and are excited to have their support and credit expertise for our continued expansion,” said Iain Whyte, Chairman of PPL and Pasadena Private Financial Group. “Meanwhile, East West Bank has continued to be a responsive and attentive banking partner and the fact they are also headquartered in our hometown of Pasadena is a wonderful bonus.”

Andrew Stein, Executive Vice President and Head of Commercial Banking and Specialty Finance Eastern Region at East West Bank, noted the bank’s growth in the specialty finance space.

“Over the past several years, we have developed expertise in the specialty finance space and our portfolio has demonstrated strong double digit growth year-in and year-out. Our experience allows us to support emerging lenders with strong management teams and unique programs like that of PPL,” Stein said.

Mark Parsa, Partner at SLR Capital Partners, expressed enthusiasm about the partnership. “SLR is excited to partner with the management team of PPL. We look forward to supporting PPL’s growth and are excited to expand the strategic partnership by leveraging the expertise of PPL’s strong team,” Parsa said.

Founded in 2006, SLR is a diversified middle market private credit solutions platform and SEC-registered investment adviser that primarily invests in U.S. middle market companies.

Pasadena-based East West Bank, the largest publicly traded bank headquartered in Southern California, operates over 110 locations in the United States and Asia with total assets of $74.5 billion as of September 30, 2024.