Mezzanine Definition

• Long term subordinated debt
• Hybrid debt/equity
• In the middle of corporate structure
• Subordinated to other debt but with some equity upside and terminal value
• Current participation and terminal value interests aligned with sponsors
• Equity upside only realized if sponsor also succeeds in growing the business and creating equity upside
• Win/win if sponsor does well, mezzanine does well and vice versa

Mezzanine Applications

• Flexible structure
• Flexible investment that can be adapted to each specific situation
• Expansion / Growth Capital Opportunities
• Greenfields
• Recapitalizations and Restructurings
• Leveraged Buyouts
• Management Buyouts