Travelers Financial Group launched Travelers Restructuring Capital (TRC), a transitional capital initiative designed to support small and mid-market businesses that operate in asset-intensive industries.

TRC works with companies at each stage of the corporate life cycle, allowing them to better understand their clients’ assets, business and credit needs to provide them with custom capital solutions outside of those offered by traditional banks. Initially created as a means of servicing and expanding Travelers Financial Group’s existing client base, TRC is now being launched as a standalone subsidiary and full-scope financier for borrowers facing challenges securing traditional funding.

Specifically, TRC evaluates a client’s borrowing ability and inherent risks by underwriting a company’s off-balance sheet equity. This allows for credit solutions, including structured, secured and mezzanine asset-based financing solutions, as well as transitional and distressed balance sheet restructurings.

“The Travelers Group is excited to announce the official launch of Travelers Restructuring Capital,” Jim Case, CEO of Travelers Financial Group, said. “TRC endeavors to support businesses by accessing untapped liquidity from their balance sheets and providing non-conventional financing solutions to assist in executing and accelerating their turnaround or growth initiatives. The inception of TRC marks the beginning of an exciting growth horizon for our broader group as our focus expands to include restructurings in the transitional and distressed space.”

TRC has already established a pipeline of new opportunities across Canada and is now actively looking to develop long-term strategic partnerships with clients and originators alike.

“Capable of providing capital across the risk spectrum, TRC is designed to be a true transition lender in North America,” Warren Miller, VP of Travelers Restructuring Capital, said. “With the ability to assist borrowers with short-term bridge liquidity, long-term credit facilities, full-on balance sheet restructuring and consolidation facilities, near-distress and distressed situations, as well as rapid-growth capital support, TRC is well-positioned to assist companies at every stage of the corporate cycle.

“Given the current economic climate, many companies stand to benefit from partnering with a flexible and non-restrictive creditor that allows business owners to run their operations without interruption and interference from traditional lenders who require a more stringent operating and covenant-heavy environment. With access to multi-tiered capital pools, TRC aims to help our originators reach their stated growth objectives while also creating a comprehensive ecosystem of capital solutions for our clients. We are targeting investments from $500,000 to $25 million, with the ability to close larger transactions as required.”