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Mezzanine Financing

December 21, 20231 min read

Meet Your Capital Requirements Through the Use of Mezzanine Financing

At Pearl Financing, we believe in the importance of offering a wide variety of funding services in order to help you avoid any gaps relating to your capital requirements. Mezzanine financing is one such way that we do this, and this particular instrument is beneficial due to the manner in which it combines various features of equity and debt financing. Of course, these options are advantageous in their own regard, but there are always instances in which other options must be explored.

A Detailed Look at Mezzanine Financing

As a subordinated debt that may also include an equity aspect, a mezzanine loan is actually expected to have a higher rate of return. This is, of course, due to the fact that it also carries greater risk, as the return can be the result of any of the following:

  • Equity stake

  • Cash interest

  • PIK (Payable In Kind) interest

Typical Usage

A mezzanine loan is often used as a supplement for acquisition funding, as it is possible to reinforce equity and senior loans in order to complete a leveraged buyout.

This type of financing also has uses in real estate applications as well, and it is frequently utilized in financing development projects in a similar manner to acquisitions. A mezzanine loan is generally used as a supplement to equity and primary mortgage.

Pearl Financing is pleased to be able to offer extensive capital to meet all of your varied financing needs. To learn more about how our many funding options can assist you, please contact us today.

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Hear What Our Clients Say

Ron Davidson

Investor

Pearl Financing exceeded our expectations with their commercial real estate financing options. Their expertise in large-scale property development helped us secure the funding we needed for a major residential project, streamlining the entire process.

Tyrel Simmons

UrbanSpace Ventures

Finding a financial partner who understands the complexities of urban development is challenging. Pearl Financing provided us with tailored real estate financing solutions that were instrumental in launching our mixed-use development project ahead of schedule.

Samantha Lee

Lee Commercial Developments

The team understands the real estate market's nuances. Their flexible financing options for commercial properties allowed us to expand our portfolio and invest in lucrative opportunities with confidence. Their guidance and support have been invaluable.

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