The FINANCIAL — Bank of America announced today that it will expand its asset-based lending capabilities to serve smaller middle-market businesses as a result of its acquisition of a former LaSalle Bank business unit, LaSalle Business Credit.
Bank of America Business Capital will form a new national division to serve this market, focusing on asset-based financing from $5 million to $25 million. As a result of this expansion, the company will now provide asset-based loans from $5 million to $2 billion. Bank of America acquired LaSalle Bank on October 1, 2007.
Joyce White, president of Bank of America Business Capital, has appointed Bruce Denby to head the new group, to be called the Business Finance Division. Denby will work with Bob Corsentino, who will be responsible for all portfolio management.
Denby previously served as National Manager, Sales and Underwriting at LaSalle Business Credit. Corsentino was the former head of credit for LaSalle Business Credit. Both will continue to be based in Chicago.
"This new nationally focused division enhances our ability to provide resourceful secured financing solutions for businesses," said White. "It also allows us to offer our broad array of Bank of America products and services to an expanded client base and to a host of potential clients in this market."
The merger will also provide greater reach into the Midwest where LaSalle Business Credit was a major player.
"As the industry leader, Bank of America Business Capital has a terrific recognition and reputation in the commercial finance arena," said Denby.
"With a talented, experienced team that knows the smaller end of the middle-market well, I believe we can bring something special to the marketplace. These enhanced capabilities are particularly important during what appears to be a slowing economy as these conditions typically result in
an increased need for asset-based financing."
In addition to forming the Business Finance Division dedicated to serving the needs of the smaller middle-market, Bank of America Business Capital is separating its Central/Southeast Division into two divisions. Ferrell Coppedge will continue to lead the Southeast Division, while John Mostofi
will lead the Central Division. Mostofi was previously in charge of the large asset-based lending team at LaSalle Business Credit and will continue to be based in Chicago.
"We anticipate quite a bit of deal growth in each of these markets," said White. "As such, we believe that our current and potential clients will be best served with separate divisions dedicated to each market."
Bob Arth and Dan deBrauwere will continue to lead the Northeast and Pacific/Southwest divisions respectively.
Bank of America Business Capital is one of the world's largest asset-based lenders, with more than 20 offices serving the United States, Canada and Europe. It provides companies with senior secured loans, cash management, interest rate and foreign exchange risk management, and a broad array of
capital markets products. Capital markets and investment banking services are provided by Banc of America Securities LLC, member NYSE/NASD/SIPC, a subsidiary of Bank of America Corporation and an affiliate of Bank of America Business Capital.
Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services.
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