PNC announces $44.8 million in financing for Pennsylvania businesses

As 2010 began and the dust of the recession began to settle, few companies were spared a good kick in the wallet. But like any great skirmish, someone always laughs last, and Fortune Magazine was there to rank them with an April 28 feature called “23 who Laughed at the Recession.” With 177-percent growth in 2009, it is no surprise that No. 6 on the list was Pittsburgh-based PNC Bank. Often thought a regional institution, PNC’s acquisition of National City of Cleveland boosted the bank to national player status, as it became the fifth largest bank in the U.S. Perhaps that’s why their chief economist recently told the Pittsburgh Business Times that, when it comes to recession, “the worst is over.”

As one would expect from a strong financial performer, PNC is lending again and earlier this month, announced $44.8 million in financing for two Pennsylvania companies. Pittsburgh manufacturers of train wheels and axles, Standard Steel, received a $26 million revolving credit facility as well as collection and disbursement tools. And Sparks Marketing, a Philadelphia-based global events marketing firm, received $18.8 million in secured credit, as well as fraud protection and web-based cash management tools.

“PNC business credit had a record year in 2009,” says PNC Mid-Atlantic marketing manager for business credit Thomas Gutman. “We have done a lot of deals inside the commonwealth and we like to highlight companies that exist inside the bank’s footprint.”

As the only independent manufacturer of railcar axles in North America, Standard Steel hopes that, by refinancing debt and adding working capital through this new financing, they can keep providing steady jobs for Pittsburgh’s manufacturing sector. Sparks has grown by leaps and bounds the past few years, increasing their international trade show business. But it was their versatility, Gutman says, that made these companies attractive to PNC. It all comes down to fundamentals.

“Our decision to lend to these companies was predicated on their high quality management, proactively managing themselves through the recession,” says Gutman. “They are very well positioned to take advantage of an improving economy.”

Source: Thomas Gutman, PNC Bank
Writer: John Steele