SalemBridge Advisors

P: 646-926-4391

F: 646-304-9221
info@salembridgecapital.comm

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SalemBridge Investments, LLC dba SalemBridge Advisors is not a licensed securities dealer, broker or US investment adviser, or certified public accountant. None of the information contained herein constitutes a solicitation for any purpose in any form or content, nor an offer to sell and/or buy securities and or properties. Any completed transaction is strictly one of private placement, and is in no way relying upon, or relating to the United States of America Securities act of 1933, as amended, or related regulations. Merely describing the details of an existing private placement program does not constitute an offer or solicitation of any kind and, if presented, is done so as a request for information.

 

SalemBridge Advisors is in the business of commercial business consulting. SalemBridge Advisors makes no warranties or representations whatsoever. All due diligence is the responsibility of the Borrower, the Correspondent and the Lender.

MEZZANINE DEBT

mezzanine loans, subordinated financing, mezzanine debt loans, unsecured business loans, cash flow loans, enterprise value loans, junior debt loans, subordinated debt loans, mezzanine loan refinancing, loans against cash flow

Mezzanine Debt can be quite expedient for companies that demonstrate strong cash-flows but lack the necessary tangible assets typically required for securing conventional debt financing. Mezzanine Debt is a form of hybrid capital that has features and characteristics of both debt and equity but is subordinate to all other forms of debt. Mezzanine Debt ranks in the middle of the capital structure between senior debt and equity holders, therefore it is a cheaper form of capital compared to equity. 

 

Mezzanine debt is often ideal for covering funding gaps often needed to complete leveraged buy-outs or buy out an existing shareholder(s). Can also be utilized for growth capital and refinancing purposes.

 

Transaction Size:  $1,000,000 to $50,000,000

 

Structure/Terms:  Typically around 5-7 year maturity, interest only payments for first few years, 10-15% per annum (cash and/or PIK), attachable warrant between 5-20%

 

Criteria:  Profitable companies with strong historical cash-flows, 3-5x EBITDA basis

 

Features:  Unsecured. No personal guarantees. Less expensive than equity. Less dilution. Flexible financial covenants compared to bank debt