Mezzanine Lending
Your goal:
To raise funds for a project when project financing is unavailable
Our solution:
A mezzanine loan is a loan with higher risks that involves the subordination of a mezzanine tranche in relation to other loans
Specific features of mezzanine lending:
- Cheaper than attracting funds on the equity capital market
- Involves debt financing of projects with the simultaneous purchasing of the company’s stock option
- Mezzanine loans have the status of junior debt and are subordinate to other loans
- Interest rates are higher compared to traditional bank loans due to the subordinate nature of mezzanine loans
- Financing is provided for up to 10 years with the return of funds at the end of the term