1 / 9

WELLS FARGO FOOTHILL

WELLS FARGO FOOTHILL . M&A Discussion for Kuhn Capital Chicago 2/12/04. Wells Fargo Foothill History. Founded 1970 Rapid Growth in 1970s Became NYSE Traded 1987 1990’s: Ability to tap Public Debt Markets which helped Foothill develop its focus of today Acquired by Norwest October, 1995

hasana
Télécharger la présentation

WELLS FARGO FOOTHILL

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. WELLS FARGO FOOTHILL M&A Discussion for Kuhn Capital Chicago 2/12/04

  2. Wells Fargo Foothill History • Founded 1970 • Rapid Growth in 1970s • Became NYSE Traded 1987 • 1990’s: Ability to tap Public Debt Markets which helped Foothill develop its focus of today • Acquired by Norwest October, 1995 • ~$775 million of assets at time of sale • Norwest + Wells Fargo in 1998 • Today~$9 billion of assets through 4 units

  3. Business Units • Four Business Units • Business Finance Division: Focuses on manufacturing, distribution, SOFTWARE AND TECHNOLOGY; traditional asset based loans (plus underwriting of enterprise valuation “B” pieces. • Wells Fargo Retail Finance: Focuses on retailers only • Foothill Wholesale Finance: Focuses on lending to other lenders, or wholesale lines of credit. • Foothill Specialty Finance: Lending to non traditional asset based customers, such as hotel/casino, media,and pure cash flow businesses.

  4. Business Finance Division • Los Angeles Headquarters - Offices Nationwide • New York, Chicago, Boston, Atlanta, Dallas, San Francisco • $500 Million Underwriting capability, $30-$50 Million Typical Hold; good syndication network. • Over 550 Accounts • Pricing Parameters • Interest Rates: Libor +1.75%…and up…and up... • Closing Fees: 0.50% to 2.00% of the Credit Line • Unused Line Fees and Collateral Service Fees • It may look like a lot… but you may get the Wells Fargo Foothill putter and other assorted gifts

  5. What we focus on in technology lending…. • Collateral Coverage/Exit Strategy • Must Have “Running Room” at Closing • Need to Have a Reasonable Plan (Aid by third party consultants is a benefit) • Competent Management that Communicates effectively • Recurring Revenue, Install Base of Customers

  6. Strategic Partnerships • Subordinated Debt Lenders such as Cerberus Partners, Highbridge/Zwirn, and Goldman Sachs Credit Partners • Equity Sponsors such as Windpoint, GTCR Platinum/Gores, Cypress Funds, and Deutsche Bank Private Equity Wells Fargo Partnerships (banking needs)

  7. How do we lend to software companies? • Our financing packages leverage a Borrower’s assets to provide liquidity based on advances against: • A/R: up to 85%, • Recurring Revenue, install base, and retention rates. • We are typically effective for established operating companies facing a re-capitalization, acquisition financing, new buyout because of the leverage that we can provide.

  8. Recent Deals • SPSS, Inc. (Database Software company) • $30MM Loan supported by the install base of customers and on-going monthly fees. • Norstan, Inc. (IP/telephony installation business) • $27.5MM Refinance Revolver supported by maintnence contracts-recurring revenue fees. • The Learning Company • $50MM Leveraged acquisition line of credit partnering with Gores Technology Partners • Palm Computing • $150MM refinance Line of Credit

  9. Conclusion • Questions/Comments • Party Favours • Golf balls • Golf Shirts • Radio/TV • Can you get the A+ gift this holiday season? • Run a deal by us……

More Related