Unitranche Funding

Unitranche funding is the best solution for a cash flow-based deal that needs both a senior and subordinated component. Unitranche funding offers both senior and subordinated layers in one integrated loan from one loan provider. Unitranche is provided by a number of different types of lenders including private debt funds, public business development corporations, independent mezzanine funds and alternative finance companies. Unitranche is ideal for companies with the following criteria:

1. Loan need of > $15 million.
2. Combined company has light assets but strong EBITDA.
3. EBITDA > $5 million.
4. Combined history of stable financial performance.
5. Total debt to EBITDA multiple of

Unitranche funding is essentially a one stop, cash flow-based financing. Because it’s delivered by a single source provider, it is easier to raise and faster to close than a conventional two layer solution.