Using Mezzanine debt for acquisiton?

searcher profile

May 12, 2022

by a searcher in Boston, MA, USA

Does anyone have any experience using Mezzanine debt in an acquisition? Currently exploring a potential acquisition that would be in the $15M range. Goal would be to structure as follows:

~$12M bank financing
~$2-3M Mezz
~Cross collateralize current business in same industry w/ ~$1M value
~Put in around $500k - $1M cash

Ideally like to keep investors out if at all possible (hence this structure...) any input if its within reason?

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commentor profile
Reply by a lender
from McGill University in Greenwich, CT, USA
Hi Michael, my firm, Libertas Funding, provides unsecured, non-dilutive debt towards acquisitions. While mezz lenders typically have lower rates than us, our funding is truly non-dilutive and doesn't have any warrant coverage, and we can move a lot faster than them (close in <1 week). Email me at redacted if you want to learn more. Thanks!
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Reply by an intermediary
from The University of Chicago in Chicago, IL, USA
Try Barry Peterson redacted McNally redacted wants 1x equity below them and equity kicker. Typically in the same entity. Above guys are known for creative structures.
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