About Mezzanine Finance

Mezzanine capital is a layer of a company's capital structure that bridges the gap between senior debt and equity and is typically used by a company in transition. This transition may result from strong internal growth, a significant acquisition opportunity or a change in ownership, including a recapitalization or a buyout. These events can exhaust a company's borrowing capacity with its lenders, limiting growth and reducing financial flexibility. Mezzanine capital is designed to help companies become more successful by enabling a company to leverage its cash flow. When structured properly, mezzanine capital expands a company's borrowing capacity with less dilution to owners than the issuance of additional equity.