Mezzanine capital - Features
Our mezzanine capital is subordinated debt.
The capital that is made available is subordinate to senior debt, and consequently extends the company's liable capital base. Mezzanin Finanzierungs AG is therefore a risk capital partner which also supports the company in difficult times.
Our mezzanine capital cannot be cancelled.
When it signs the subordinated loan agreement, Mezzanin Finanzierungs AG waives any demands for payment to become due and payable in case the financial position of the borrower of mezzanine capital should deteriorate. Mezzanin Finanzierungs AG therefore remains the borrower's risk capital partner until the end of the contractual term of the mezzanine loan.
Our mezzanine capital is unsecured.
No collateral is required to raise mezzanine capital since the capital involved is risk capital. This means that the scope for banks to grant the company any loans is not reduced.
Our mezzanine capital is repayable at final maturity.
Mezzanine capital is provided in the form of a loan with final maturity. The only costs incurred during the term of the loan are the interest payments, and the cash flow is not impacted by the repayments. The capital is repaid at the end of the term.
Our mezzanine capital is economic equity capital.
In view of its features as a subordinated, unsecured, final-maturity loan that cannot be cancelled, mezzanine capital is economic equity capital. For this reason it can improve a company's creditworthiness in a bank rating as the capital - depending on the relevant bank - is partially or fully included in the company's equity capital (equity confirmations of numerous banks have been provided). This in turn increases the company's possibilities for raising loans.
Our mezzanine capital can be tailored to meet individual needs.
The terms and conditions and details such as the term of the loan, repayment possibilities and the amount are agreed with each customer individually. The loan agreement includes a current interest rate, a redemption premium (with a fixed and/or floating rate component) and a handling fee. The current interest rate is based on an agreed premium for refinancing with matching maturity (EURIBOR).
