Oxford Finance backs bicycle distributor HLC with cross-border asset-based loan
What's the deal? Oxford FinanceDealroom has a profile for this one. Try Dealroom → has closed a cross-border asset-based lending revolving credit facility for HLCDealroom has a profile for this one. Try Dealroom →, one of North America's leading bicycle distributors. Oxford served as agent and sole lender on the transaction, which was done in partnership with HLC's private equity owner, MiddleGround CapitalDealroom has a profile for this one. Try Dealroom →.
What's the endgame? The facility leverages HLC's asset base to fund the company's ongoing growth. HLC supplies independent bicycle retailers across the United States and Canada with bicycles, components, accessories, apparel, and service solutions.
Why cross-border? HLC operates across two jurisdictions, and the structure is designed around that. "This transaction highlights the flexibility of asset-based lending for companies operating across multiple jurisdictions," said Nick McDearis, managing director at Oxford Finance.
MiddleGround Capital, a Lexington, Kentucky private equity firm with over $4.1 billion in assets under management, holds a control stake in HLC. "We look forward to partnering with a new lender that will support HLC through its next stage of growth," said Julie Sekinger, vice president of capital markets at MiddleGround.
The backdrop: Oxford Finance is a specialty finance firm based in Alexandria, Virginia. Since 2002, it has originated more than $18 billion in loans to over 750 companies.
The signal: Asset-based lending remains a go-to tool for private equity-owned businesses that want capital without diluting equity. For sponsors like MiddleGround, bringing in a new lender to back a portfolio company signals continued appetite to fund growth in middle-market industrial and distribution deals.
Read more: sfnet.com
Image credit: Richard Masoner / Cyclelicious
