Mezzanine Debt –This is a type of financing through the subordinated debt agreement, where the basic characteristic of the debt is same a subordinated one. They often include subordinated loans with features similar to equity, thus, making it a subordinate loan in the capital structure of the ...
Mezzanine financing sits between senior debt and equity contribution. It is a form of debt where the lender can choose to get ownership of the company under specific conditions. Mezzanine lenders provide funds to the buyer with the expectation of earning interest and having the option to convert ...
Pooled financial securities are generally broken into three tranches: senior, mezzanine, and junior. Each tranche has a different level of risk and, therefore, a different level of return. Senior tranches have the least risk and the lowest returns while junior tranches have the highest risk and ...
2. Debt Financing:It is when the acquiring firm borrows money from lenders to fund the merger/acquisition. Debt financing may include bank loans, bonds, or other types of debt securities. 3. Mezzanine Financing:It is a combination ofequity and debt financing. It typically involves issuing debt...
Hedge Funds and Institutional Debt Investors Additionally, two other participants in the syndication process are the: Agent: Serves as the point-of-contact for information and communications to flow among all parties Trustee: Responsible for holding onto the securities associated with the “secured” ...
Mezzanine financing. A type of hybrid debt and equity deal, where the private equity firm either lends the company money or arranges for debt financing. The firm retains the option to exchange that debt for a percentage stake in the company. These deals are sometimes done in conjunction with ...