Techniques of Mezzanine Funding

Mezzanine: Both Debt and Equity
  • Definition
  • Required rate of return
Mezzanine Lenders
  • Banks, investment and specialist funds
  • How they finance themselves
Leverage Buyout (LBO) Analysis
  • How private equity investors value target companies
  • Risk and leverage
  • How to compute the investors IRR
Mezzanine Debt in LBO Transactions
  • Structuring a Leverage Buyout: balancing equity, senior and mezzanine debt
  • Types of mezzanine debt
  • Exit strategies
  • Practical workshop
  • Structuring an LBO transaction, calibrating the financing (equity, mezzanine and senior debt), target returns and sensitivities to mezzanine assumptions
Mezzanine Lenders and other Parties to the Transaction
  • Vs junior lenders: covenants, warranties, subordination
  • Vs equity investors: exit, warrants, shareholders agreements
How Mezzanine Lenders Assess the Risk of a Transaction
  • Bank mezzanine lenders
  • Mezzanine fund investors
New trends in Mezzanine Funding
  • A profitable substitute for equity
  • Mezzanine and minority investment
  • Mezzanine in corporate lending
  • Why and when mezzanine investors become equity investors
  • Practical workshop
  • Case studies from recent transactions

  • Know how to structure the financing depending on the specific features of the target
  • Know how to optimize the risk/return features of each financing instrument
  • Know how to size mezzanine debt with an optimal risk/dilution mix
  • Be aware of current market trends, main market players and bankability requirements
  • Master all aspects of mezzanine funding
  • Hands on approach of structuring private equity and acquisition transactions
  • No pre-requisite
  • Corporate borrowers and lenders
  • Commercial and investment bankers
  • Private equity specialists
  • All professionals wishing to understand better leveraged and mezzanine finance techniques
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