HLC Secured Cross-Border Asset-Based Credit Facility
The bicycle distributor will utilize the revolving credit facility to support growth across its North American operations.
Updated on Oct. 14, 2026 in Corporate Finance
Oxford Finance has acted as the sole lender and agent for a new cross-border asset-based revolving credit facility granted to bicycle distributor HLC. The transaction was established to support the company’s business objectives and MiddleGround Capital’s investment in the firm.
Why it matters
Asset-based lending provides distributors with flexible liquidity tied directly to their inventory and receivables, allowing for scalable growth. This financing structure supports HLC’s continued operations and expansion in the United States and Canada.
Oxford Finance acted as the sole lender and agent for this revolving credit facility, which leverages HLC’s asset base. The total financial value of the facility remains undisclosed.
The players
Oxford Finance
A specialty finance firm that provides senior secured loans to life sciences and healthcare companies, as well as asset-based facilities for middle-market businesses.
HLC
A bicycle parts and accessories distributor operating across the United States and Canada.
MiddleGround Capital
A private equity firm that invests in lower middle-market B2B industrial and specialty distribution companies.
The details
The facility is structured as a revolving line of credit secured by HLC’s existing asset base, including inventory and receivables. By leveraging these internal assets, the company gains working capital to fund ongoing growth and strategic business objectives under the ownership of MiddleGround Capital.
Timeline
October 14, 2026: The closed credit facility was officially announced.
Market Landscape
This transaction follows the established industry pattern of distributors utilizing their balance sheets to secure scalable, non-dilutive capital. It remains a common strategy for private equity-backed firms to manage liquidity needs without issuing additional equity.
Operators should evaluate whether their current inventory and receivables can support similar asset-based financing as an alternative to equity raises. Consult with your financial advisors to determine if your firm’s current asset quality qualifies for comparable credit terms.
The takeaway
Accessing capital through existing assets allows distributors to maintain operational momentum without immediate equity dilution. Owners should review their inventory turnover ratios and receivables aging schedules as these are the primary metrics lenders scrutinize for facility approval.
Further reading
For more on how companies secure capital, see our guide on Corporate Finance.
