Mezzanine financing can be thought of as a hybrid of debt and equity financing. It is generally used in the later stages of a company's development fo expansion of the business or acquisition of a competitor or vertically integrated company. Mezz debt is generally subordinated to senior lenders or asset-based financing lenders. Mezz financing is advantageous to a company becase it is regarded as equity on the Company's balance sheet and thus makes further financing easier.
In seeking placement of Mezzanine Debt a Company should have
> A track record in the industry with a good reputation in its products or services
> A history of profitability or, if breakeven or showing some losses, a clear path to profitability.
> A well thought out plan for the application of the capital whether it be expansion of the existing business, expansion of product or services lines, or an acquisition.
We work directly with companies and also with their intermediaries or advisors.
