CIT Northbridge Credit Provides Working Capital Financing to Winona Foods

Rhea-AI Summary

First Citizens Bank (FCB) announced that CIT Northbridge Credit, with advice from First Citizens Institutional Asset Management LLC, has provided working capital financing to Winona Foods in Green Bay, Wisconsin. Winona Foods is a fully integrated processor and distributor of cheese and cheese products. CIT Northbridge Credit is a trusted financial partner supporting middle-market companies with a broad range of flexible asset-based debt solutions.

Financial Analyst

The provision of working capital financing to Winona Foods by CIT Northbridge Credit signifies a strategic move that can influence the company's operational flexibility and its ability to meet strategic objectives. Working capital loans are critical for businesses as they provide the liquidity needed for day-to-day operations and can fuel expansion efforts. The size and terms of the credit line, which are not disclosed, would be instrumental in assessing the potential impact on Winona Foods' financial health and growth trajectory.

From a financial perspective, the agility of CIT Northbridge in structuring such deals is indicative of a responsive and potentially lucrative market for lenders in the asset-based lending space. Stakeholders, including investors and industry analysts, should monitor the utilization of this line of credit and its effects on Winona Foods' balance sheet and income statements in subsequent financial reporting periods.

Industry Analyst

Winona Foods operates in the food processing and distribution sector, a highly competitive and margin-sensitive industry. The ability to secure a flexible asset-based revolving line of credit could provide Winona Foods with a competitive advantage by enabling the company to manage inventory more effectively, respond to market demands promptly and invest in new technology or market expansion. The impact of such financial leverage on Winona Foods should be considered alongside industry benchmarks for leverage and liquidity ratios, which could affect the company's risk profile and operational strategy.

Furthermore, the partnership with a financial entity like CIT Northbridge Credit, which specializes in middle-market solutions, may reflect an industry trend where specialized financial services cater to niche market requirements, providing tailored solutions that support growth and operational efficiency.

Economist

Asset-based lending, such as the revolving line of credit extended to Winona Foods, is an important economic tool that can stimulate business activity by providing companies with the necessary capital to invest in production and distribution. This type of financing is especially relevant in the context of economic cycles, as it can help businesses manage through periods of fluctuating demand. The broader economic implications of such financing arrangements include potential job creation, increased production capacity and enhanced supply chain dynamics within the food service and retail sectors.

However, the reliance on such financial instruments also exposes companies to risks associated with interest rate fluctuations and credit market conditions. Economists would evaluate the sustainability of such financial strategies in the context of current economic indicators and trends, including inflation rates, consumer spending patterns and the overall health of the credit markets.

RALEIGH, N.C., Dec. 20, 2023 /PRNewswire/ -- First Citizens Bank today announced that CIT Northbridge Credit, as advised by First Citizens Institutional Asset Management LLC, has provided working capital financing via a revolving line of credit to Winona Foods in Green Bay, Wisconsin.

Winona Foods is a fully integrated processor and distributor of cheese and cheese products for food service, industrial ingredients, and retail sectors. Their sophisticated manufacturing capabilities allow Winona Foods to produce a variety of cheese products along with other portion-controlled products such as dips, sauces, and dressings.

"We appreciated CIT Northbridge's agility and expertise in delivering a financial package that supports our efforts to make meaningful strides toward our strategic objectives, especially as we head into a new year," said Luke Kelly, Chief Financial Officer of Winona Foods.

"We were delighted to support Winona Foods with this financing to help grow their business," said Neal Legan, who leads the team that advises CIT Northbridge.

CIT Northbridge Credit is a trusted financial partner supporting middle-market companies with a broad range of flexible asset-based debt solutions. A joint venture advised by First Citizens Institutional Asset Management, it provides revolving and term loan commitments from $15 million to $150 million to companies across various industries and business cycles, and serves primarily as sole lender, agent, club participant or co-lender.

About First Citizens Bank
First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Headquartered in Raleigh, N.C., and now celebrating the 125th anniversary of its founding, First Citizens has built a unique legacy of strength, stability and long-term thinking that has spanned generations. First Citizens offers an array of general banking services including a network of more than 500 branches and offices in 30 states; commercial banking expertise delivering best-in-class lending, leasing and other financial services coast to coast; innovation banking serving businesses at every stage; and a nationwide direct bank. Parent company First Citizens BancShares, Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with more than $200 billion in assets. Discover more at firstcitizens.com.

MEDIA RELATIONS:
Ella Bristow
(212) 461-5322
Ella.Bristow@firstcitizens.com 

 

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SOURCE First Citizens Bank

Who provided working capital financing to Winona Foods?

CIT Northbridge Credit, advised by First Citizens Institutional Asset Management LLC, provided working capital financing to Winona Foods.

What does Winona Foods specialize in?

Winona Foods is a fully integrated processor and distributor of cheese and cheese products for food service, industrial ingredients, and retail sectors.

What is the range of loan commitments provided by CIT Northbridge Credit?

CIT Northbridge Credit provides revolving and term loan commitments from $15 million to $150 million to companies across various industries and business cycles.

Who leads the team that advises CIT Northbridge?

Neal Legan leads the team that advises CIT Northbridge.

What type of financial partner is CIT Northbridge Credit?

CIT Northbridge Credit is a trusted financial partner supporting middle-market companies with a broad range of flexible asset-based debt solutions.