CapitalSource Announces Formation of Retail Finance Division.Business Editors CHEVY CHASE Chevy Chase (chĕv`ē), town (1990 pop. 8,559), Montgomery co., W central Md., a residential suburb of Washington, D.C.; founded as a village, inc. 1914. , Md.--(BUSINESS WIRE)--June 18, 2002 CapitalSource, a commercial finance company based in Chevy Chase, Md. that specializes in asset-based, senior and mezzanine financing Mezzanine Financing A hybrid of debt and equity financing. Mezzanine financing is typically used to finance the expansion of existing companies, and it is basically debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the , announced today the formation of a new Retail Finance division within the company's Corporate Finance unit. The Retail Finance division is being established to serve retailers who seek capital during times of strategic growth, challenge or opportunity. CapitalSource's product offerings will include senior "stretch or bridge" financing, mezzanine and term capital, as well as selected subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". and equity investments. Also announced today was the appointment of two former retail finance senior executives from the Boston offices of Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. who will head up the new division. Andrew H. Moser, former chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , and Robert J. Shusterman, former national director of business development, both join CapitalSource in further establishing the company's Boston office. As the national group leader of retail finance, Moser will lead the development of the retail lending franchise and oversee business development and day-to-day lending activities for the division. Prior to Wells Fargo, Moser was a co-founder, president and chief operating officer of Paragon Capital, a national asset-based lending Asset-Based Lending A business loan secured by collateral (assets). The loan, or line of credit, is secured by inventory, accounts receivable and/or other balance-sheet assets. Also known as "commercial finance" or "asset-based financing". platform dedicated to retailers and headquartered in Boston. Shusterman, the national investment officer for retail finance, will focus on leading the development and implementation of a flexible credit infrastructure and guidelines specific to the retail industry inclusive of inclusive of prep. Taking into consideration or account; including. deal process and lending criteria. Prior to Wells Fargo, Shusterman served as chief credit officer of Paragon Capital until it was sold to Foothill Capital Corporation in December 2000. "This is a very exciting time and opportunity for CapitalSource," said Joseph Kenary, managing director of CapitalSource's Corporate Finance unit. "With a proven track record lending to retailers in all segments and situations for nearly a decade, Andy and Rob will provide considerable retail insight and expertise. This will enable CapitalSource to look at retail transactions from a complete and thoughtful perspective, which reflects CapitalSource's approach to all areas of commercial lending. We couldn't be more pleased or feel more fortunate to have attracted such a seasoned management team to lead us forward in lending to retailers." "Today, many providers of capital to the retail industry offer only limited, formulaic product offerings, rather than employing an alternative, customized capital product specific to the need of the retailer," Moser said. "We will offer an alternative founded on experience and solid credit principles with an eye toward maximizing success and opportunity for the retailer." About CapitalSource CapitalSource is a commercial finance company offering asset-based, senior and mezzanine financing ranging from $1 million to $40 million to small and mid-sized borrowers through three focused lending units: Corporate Finance, Healthcare Finance, and Structured Finance. CapitalSource has $540 million of committed equity capital and over $2.5 billion in funding capabilities. Headquartered in Chevy Chase, Md., CapitalSource has a full-service office in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden and satellite offices in Boston, Dallas, Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Philadelphia. For more information visit www.capitalsource.com or call toll free 866/876-8723. |
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