Subordinated debt, also known as Mezzanine or junior debt, is a second-level of debt. Such debt is referred to as subordinate, because the debt providers (lenders) have subordinate status in relationship to the senior debt.
Mezzanine loans have become a common alternative to conventional subordinate financing where the terms of a superior (first position) loan prohibit the placement of junior liens on the subject property.
Our mezzanine loans are not secured by a trust deed on the property, but by stock in the entity that owns the property.
Mezzanine loans fill the gap between equity and senior debt and are often used to finance leveraged buyouts, or to fund internal growth strategies.
A higher LTV is typical with Mezzanine Loans so feel free to contact us now for your financing needs.
Contact us today for a Mezzanine Loan quote.