Debt-Equity-Structured-Finance

Capital Placement Service : Helping clients by arranging structured and restructured debt, Mezzanine Finance, Preferred Equity and JV for existing and new construction.

$20M to $500M.

Debt, Mezzanine, Soft and Hard Preferred Equity Structured Financing.

"Structured finance is a financial instrument available to companies with complex financing needs, which cannot be ordinarily solved with conventional financing. Traditional lenders do not generally offer structured financing. Structured financial products, such as collateralized debt obligations, are non-transferable."

Mezzanine : Mezzanine loans bridges the gap between debt and equity financing of large project debt. It is 2nd position to pure equity but senior to pure debt. However, this means that it also offers some of the highest returns for lenders when compared to other debt types, as it often receives rates between 9% and 20% per year, and sometimes as high as 30%. Borrowers will turn to mezzanine financing in order to fund growth projects or to help with acquisitions with short- to medium-term time frame.

Hard Preferred Equity : The preferred return must be paid even if there is insufficient net cash flow, with no provision for forgiveness or accrual. The right to exercise a control takeover based on the Property’s inability to meet quantifiable performance measures such as occupancy or DSCR. Investor may require a forced sale if the preferred return or the preferred contribution is not paid

Soft Preferred Equity : Return on the equity investment is payable only out of net cash flow OR – Allows forgiveness or accrual of any return not paid because of a lack of net cash flow.

Soft Preferred Equity : Return on the equity investment is payable only out of net cash flow OR – Allows forgiveness or accrual of any return not paid because of a lack of net cash flow.

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