mezzanine financing

Mezzanine financing

The next stage of financing that follows venture capital financing.
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Mezzanine Financing

A type of debt financing whereby a company issues debt that the holders may convert into equity if the debt is not repaid in due course. This debt carries a high interest rate, as there is little or no collateral, but it is low-risk compared to other forms of debt financing because of its convertibility. Mezzanine financing is listed on a company's balance sheet as an asset; some companies use mezzanine financing because it makes it easier for them to obtain financing from other sources. Mezzanine financing is sometimes associated with leveraged buyouts.
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mezzanine financing

High-yield debt issued in connection with a leveraged buyout.
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mezzanine financing

A hybrid of debt and equity funding.Usually shortened to “mezz financing.” The provider loans money on a second or even third mortgage basis and may either take an ownership interest in addition or may reserve the right to take over an ownership interest if the loan is not paid on time and in full.The loans are generally extended in emergency situations, such as to buy property quickly before bank lending can be arranged, or to engage in expansion activities and “grow” a company out of a cash crunch that is preventing it from securing a conventional loan. Because of the subordinate nature of the debt,the risky nature of the activities being funded by the money, and the lack of time to perform due diligence, mezz lenders usually want a high return on their money,in the 20 to 30 percent range.

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References in periodicals archive ?
BANKING AND CREDIT NEWS-July 11, 2018-LendingPoint secures increase in mezzanine financing
M2 EQUITYBITES-July 11, 2018-LendingPoint secures increase in mezzanine financing
Global Banking News-July 11, 2018-LendingPoint secures increase in mezzanine financing
The new team will leverage Walker & Dunlop's extensive network of capital providers to address the strong market demand for structured finance capital including joint venture equity, preferred equity, mezzanine financing, and construction financing, across all commercial real estate asset classes.
Meridian Capital Group announced that Morris Betesh, Justin Boruchov, and their team of four analysts and junior brokers have joined the firm to focus on mortgage and mezzanine financing in New York City and beyond.
Hypothesis: mezzanine financing, utilizing its specific benefits, is increasingly used to finance the gap in the financing of innovation, in particular special purpose companies in the SME sector.
Its financing - including a loan of up to $70 million, $52 million mobilized from partners, and $22 million in mezzanine financing - will go toward the development of Egypt's first private Liquid Bulk Terminal at Sokhna Port on the Red Sea.
This is the fifth successful realization for NBK Capital Mezzanine Fund I, the MENA region's first credit fund providing mezzanine financing to growing middle market companies.
In this CLE course our panel of key thought leaders and practitioners, assembled by The Knowledge Group, will discuss the fundamentals of Mezzanine Financing and the most current and significant issues surrounding this topic.
Euronav will finalise in the coming days a USD-500 million bank debt facility as well as USD-235 million of mezzanine financing in order to complete the financing of the acquisition.