client_transactions

SSG Client Transactions

Title

American Business Financial Services, Inc.
Client Profile

Client Profile

American Business Financial Services, Inc. ("ABFS" or the "Company") originates, sells and services sub-prime consumer mortgage loans. These loans are secured by first and second mortgages on one-to-four family residences and provided primarily to credit-impaired borrowers who are generally unable to obtain financing from traditional banks or savings and loan associations.
Situation

Situation

In 2003 and 2004, the Company endured a liquidity crisis due to (1) its inability to securitize loans, (2) reduced warehouse line capacity, and (3) the cessation of its subordinated note program. As a result, the Company filed for Chapter 11 bankruptcy protection in January 2005.
Solution

Solution

SSG was retained with the mandate of obtaining a Debtor-In-Possession loan facility adequate to fund working capital requirements, as well as the capital necessary to originate new mortgage loans. Under a demanding timeframe, SSG assisted ABFS in raising a $500 million DIP loan ensuring operational solvency and the ability to generate new loans going forward.
February 2005
$500,000,000
Debtor-In-Possession Financing
provided to
The undersigned acted as Investment Banker to American Business Financial Services, Inc.
on this transaction.

Call to learn more

Call to learn more

If you would like to learn more about this transaction, or any of our transactions, call us today.

Philadelphia
(610) 940-1094

Contact by E-mail »

New York
(212) 786-7432

Contact by E-mail »