Mezzanine financing

Mezzanine financing is to point to in the risk and return between whether to determine the priority in debt and equity financing between small and medium-sized enterprise financing form. For the company and stock for reference, sandwich investment usually offer form very flexible relatively long-term financing, this kind of the financing of small and medium enterprises degree than the stock market, diluted and can according to special needs to make adjustments. And mezzanine financing payment with can also according to the company's cash flow conditions determined.

Mezzanine financing is a kind of unsecured long-term debt, this debt attached to a small and medium enterprise investors for the issuer and the rights and interests of the right to subscribe. Mezzanine financing just subordinated debt (subordinatedebt) one kind, but it often from subordinated debt to use as synonyms. Mezzanine financing interest rates generally between 10% ~ 15%, the rate of return is target investors 20% ~ 30%. In general, the lower the interest rates, the rights and interests sandwich right to subscribe for more.

Sandwich investment also private equity capital markets (privateequitymarket) a form of investment, is the traditional business starting investment evolution and expansion. In the European and American countries, have special sandwich investment fund (mezzaninefund). If you use as many of the equity and priority debt (seniordebt) to small and medium-sized enterprise financing, but are very funding gap, interlayer small and medium-sized enterprise financing at this time to provide high interest rates than preferred creditor's rights but also bear the risk of higher debt capital. Due to the small and medium enterprise financing is often sandwich help enterprises to improve asset structure and increasing rapidly, so in turnover release this subprime debt form at the same time, often provide enterprise listed or the purchase of the equity subscribe authority.