Structured Finance
Mezzanine debt capital refers to an in-between layer of senior debt and equity. Structurally, it is subordinate in priority of payment to senior debt but senior in rank to common stock or equity. It may take in the form of senior subordinated notes, convertible debt, and preferred equity or warrant. This type of financing is typically used to fund a growth opportunity such as an acquisition, expansion, new business line, or management buyout (MBO).
Mezzanine or equity lenders, usually specialist investment funds, will look for a certain rate of return and a possibility of early exit with all the feasibility in a company. Due to its complexity of transaction, Advance Finance will design an innovative structure to suit client’s need in term of cost, timing and procedure.