Features of product

• Funding the equity shortfall in a transaction
• Structured as a higher yielding facility often with warrant attached
• Our return is achieved through a combination of cash interest, rolled up interest (PIK), exit fees or warrants applied flexibly to match the expected development of the company and our risk/return criteria
• Mezzanine is subordinate to all senior debt facilities as documented in an inter-creditor deed
• Standard Leveraged Buy Out banking covenants and reporting requirements apply

Advantages

• For appropriate companies, mezzanine finance provides an effective means of increasing equity returns by lowering the amount of equity invested and thus lowering the overall cost of capital

Features of product

• Provision of senior, working capital and mezzanine debt package –often in concert with a ‘big four’ bank
• Co-investment at the equity level where required by third party equity investor

Advantages

• An effective means of achieving your finance needs at a lower cost of capital