Mezzanine Financing
Mezzanine financing is a hybrid between debt and equity. It is issued on terms that subordinate the loan to various levels of senior and junior debt. Among the advantages of mezzanine financing for companies is the long grace period on principal and interest payments. Interest is capitalized and is repaid at the end of the period, allowing the companies to fully reinvest and utilize generated cash flows to accomplish their strategic plans. Another advantage of mezzanine financing for capital expenditures into increasing capacity, research and development, or new market expansion are that it’s cheaper than equity and offers more flexible terms and covenants than senior debt.
It is important to note that Mezzanine financing makes financial resources available to growth-oriented companies, which were deprived of the opportunity to obtain additional loans from Banks due to the already utilized loan limits and / or lack of collateral.
Galt & Taggart, for the purposes of increasing access to finance for businesses, offers them support in obtaining mezzanine financing. In case of using Galt & Taggart’s assistance in obtaining Mezzanine financing, in addition to attracting financial resources, the companies additionally benefit from the advisory services of Galt & Taggart's experienced team, which is another supporting factor for business development.