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:
- Loan need of > $15 million.
- Combined company has light assets but strong EBITDA.
- EBITDA > $5 million.
- Combined history of stable financial performance.
- 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.