Finacity structures US$50m cross-border receivables facility for Advancion

Finacity has facilitated a US$50m receivables financing facility for specialty chemicals group Advancion Corporation, using accounts receivable generated across the United States, Germany and Singapore as collateral.

The facility is funded by a global investment firm through its credit funds and accounts, although Finacity and Advancion have not disclosed the identity of the investor, pricing, maturity or advance rate.

Advancion is a portfolio company of private equity groups Ardian and Golden Gate Capital. The company operates through its ANGUS Chemical and Aruba Chemicals businesses and manufactures specialty ingredients and additives for markets including personal care, coatings, industrial applications and life sciences.

The structure gives the transaction a distinctly international receivables-finance profile. Eligible collateral includes accounts receivable originated by Advancion and its subsidiaries in three major markets spanning North America, Europe and Asia.

Advancion chief financial officer Walter Keller described the arrangement as a US$50m receivables securitisation programme and said it would increase the company’s financial flexibility while supporting continued growth.

Finacity acted as programme administrator as well as providing analytical and execution support during the transaction’s development. It will remain responsible for administration and reporting.

For Advancion, financing against receivables provides a way to convert customer payment obligations into liquidity rather than relying solely on conventional corporate borrowing. The geographical spread of the collateral can also broaden the receivables pool, although the announcement does not disclose debtor concentrations, eligibility requirements or whether different advance rates apply by jurisdiction.

The deal adds to Finacity’s sizeable receivables-finance platform. The White Oak Global Advisors company says it facilitates financing and administration covering more than US$200bn of annual receivables volume, with obligors in more than 210 countries and territories.

The transaction is particularly relevant because the financing is tied directly to Advancion’s operating receivables rather than being presented simply as a general-purpose corporate credit line.

That creates a direct link between sales generated across the three markets and the collateral supporting the new US$50m liquidity facility.