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Mezzanine Loans
Go Beyond the Limits of Traditional Debt Financing
Mezzanine loans are typically used by a company when traditional borrowing
limits are reached and the company cannot—or will not—issue more equity to fund
its incremental financing needs. The loan itself is usually structured as a type of unsecured subordinated loan that bridges the gap between
your senior debt and equity financing, often containing characteristics of both.
Since mezzanine loans generally represent
a higher level of risk for the lender, they are normally more
expensive than senior or secured debt and frequently give the lender some
right to share in the equity performance of the company. Enterprise Financial
Partners can help your company seek out this type of financing when you need to:
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Fund an expansion, a leveraged buy-out,
a recapitalization or a debt refinancing while reducing the amount of
your company’s equity investment in the transaction
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Provide capital
for an early-stage, high-growth company while limiting your company’s equity
exposure
 
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