Mezzanine Finance

Course Overview

The importance and use of mezzanine finance has increased significantly in recent years and this seminar covers all of the major applications of mezzanine debt in buy-outs.

Particular emphasis is given to the structural aspects associated with the deploymewnt of mezzanine finance, including the potential use of warrants as equity kickers.

Mezzanine is also compared and contrasted with the different alternatives.

Course Content

Background to Mezzanine

• Introduction to mezzanine (subordinated debt)
• Structure of the mezzanine market
• State of the market (factors and trends)
• Outlook for mezzanine

Use and Application of Mezzanine

• Private equity: LBOs, MBOs, P2Ps
• Acqusition finance (trade buyers, JVs, LBUs)
• Corporates (expansion, development capital, pre-IPO)
• Reorganisations / reconstructions (successions, equity release)

The Private Equity Firm’s Perspective

• Drivers in private equity
• Key reasons to use mezzanine
• Key issues

Types of Mezzanine: Overview

• Traditional mezzanine (with warrants)
• Warrantless mezzanine
• PIK preferred

Traditional Mezzanine (with Warrants)

• The basic product
• When are warrants justified?
• Benefits to issuers

Warrantless Mezzanine

• What is warrantless mezzanine?
• Use and application
• Warrantless vs traditional mezzanine

Mezzanine vs Other Forms of Junior Debt

• Mezzanine vs high yield
• Mezzanine vs CDOs
• Vendor loans

Documentation (the Investor’s Perspective)

• Typical terms of the mezzanine facility
• The intercreditor agreement

Major Legal Issues

• Subordination and ranking generally
• Contractual vs structural subordination
• Post insolvency
• Red alerts

Delivering this course in-house for you to a number of participants could be very cost effective. Please call us on 020 7387 4484 to discuss this further.

If you have any questions about this seminar please write to us at post@redcliffetraining.co.uk.