Madison Capital Funding has completed a $127 million first closing of a five-year warehouse facility with Wells Fargo Bank. The credit line includes a three-year reinvestment period, followed by a two-year amortisation period, Madison Capital said in a statement.
The money will be used to fund new loan originations. Madison Capital will serve as the originator and collateral manager. This new vehicle will also support the company’s growth. The pricing on the loan wasn’t disclosed.
Madison Capital has been working with Wells Fargo on credit facilities for the past six years. Wells Fargo won PDI’s Fund Financial of the Year in the Americas award this year. Many alternative lenders work with the US bank on credit facilities, CLO structuring, asset-based and revolving credit facilities. Clients say the bank is well integrated across its platform, making Wells Fargo easy to work with across their credit needs.
Chicago-based Madison Capital lends to private equity-sponsored mid-market companies across a range of industries. Chief executive Hugh Wade (pictured) and senior managing director Thomas Klimmeck lead the firm. They’ve been with the lender since its 2001 founding and previously worked at Bank of America.
The firm provides enterprise-value leveraged financing for acquisitions, recapitalisations, management buyouts and leveraged buyouts. Since Madison’s 2001 launch, the firm has invested $23 billion across 910 transactions. Madison Capital currently has about $8.05 billion in assets. It’s a subsidiary of insurer New York Life.