Attract Capital :: Optimize the Mezzanine Debt Structure

Mezzanine Debt as Growth Capital

Mezzanine Debt as
Growth Capital

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Step 1: Learning the Basics

Private Equity and Mezzanine Debt Basics

Step 2: Designing the Right
Structure

Optimize the Mezzanine Debt Structure

Step 3: Preparing Your Business Plan

Build a World Class, Growth Based Plan

Step 4: Attracting Mezzanine Lenders

Leverage Our Relationships

Step 5: Closing the Deal

Continuous Project Management and Advisory Services

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AttractCapital

Structured Mezzanine debt solutions deliver

STEP 2:

Contact Attract Capital

Optimize the Mezzanine Debt Structure

Our Value-Added Structures

Our Mezzanine Structure	Conventional Structure

Equity give-up of 5 to 20%	Equity give-up of 50% +
Structures customized for your company
In this 2 layer structure, we replace equity with mezzanine debt while accomplishing the same funding objective as a 3 layer structure.
This structure is based on the EBITDA multiple of the proposed debt level and our ability to substantiate the Company's equity value. As long as the debt multiple is within a certain range and a strong case can be made for excess equity value, mezzanine debt can be raised. With a mezzanine loan, the company gets money that is significantly less dilutive than straight equity. In exchange for paying a current interest rate of about 12%, the company is generally able to give up only 5% to 20% of the shares as opposed to giving up over 50% of the shares with a straight equity raise. Basically, this structure provides capital at a fraction of the cost of a three layer cake structure. We have the ability to design other structures for either a leveraged recapitalization (partial owner cash out) or an outright sale of the business for the owner.
Our expertise in devising custom structures allows us to deliver significantly lower cost growth capital structures. This creates great value for our clients.
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