Mezzanine Finance

This flexible form of funding falls between equity capital and prime secured lending facilities. It offers both medium risk and reward, and often involves equity and debt features.

Normally structured on a medium-term loan basis, it is subordinated (in terms of security) behind principal secured funding facilities such as bank debt. Consequently, it is a higher-risk facility than secured loans, but would have priority over equity capital.

Mezzanine funding can be structured using financial instruments such as loan stock or preference shares – and it can be designed so as to be convertible into equity at a later date. Typically, mezzanine finance facilities are interest-bearing, and rates are normally higher than prime secured facilities.

We can provide a comprehensive range of introductions to those financing bodies that provide Mezzanine Finance that match individual requirements.