Successful financing structure relies on the insight and experience of the institution a company chooses to work with. Perfect Alliance Capital lending associates are very experienced with identifying the right financing structure for every deal. Though debt and equity structuring are adequate solutions for many deals, there are some circumstances that require a more robust solution. Mezzanine financing is an exceptionally dynamic form of structuring that can accelerate a project towards its successful completion.
Experience Makes the Difference
Many lending institutions do not offer this type of financing because this can be a complex and potentially time consuming method of loan structuring. Our team has the experience required to handle all types of loan structuring. We can help create the right kind of lending solution for your company’s unique circumstances and we can do faster.
Aspects of Mezzanine Financing
There are three components to this financing structure that decision makers should know about:
- Equity stake: This component grants the lender the right to convert a loan into partial ownership of the borrower’s entity
- Cash interest: Periodic interest payments are made according to fixed or variable rate terms
- Payable in kind (PIK) interest: Instead of making payments on the interest, the total amount of interest is added to the capital and payments are made according to the terms