Mezzanine capital - Advantages
The most important advantages of Mezzanine capital at a glance:
- An improved rating through its equity-like nature
- No collateral is required
- No company partner status, and therefore no right of co-determination that may otherwise be granted by company law and no dilution of partners
- The burden on the cash flow is insignificant (no regular repayments)
- Tax optimisation through the possibility to write off interest payments
- No exit orientation as the loan is repaid by the company at the end of the term
Mezzanine capital is low-cost equity:
