Private Equity & Subordinated Debt

Subordinated Debt Features

We typically provide a subordinated loan in an amount based on a multiple of the company's EBITDA; our subordinated loans typically feature:

  • Pricing comprised of an up-front fee, cash interest coupon and accrued (PIK) interest coupon
  • Compensation can also include nominal cost equity warrants or other "kickers" to balance risk and return
  • Involvement at the Board level as observer(s) and through regular financial reporting
  • Maturity of 5 years, with the ability to structure longer maturities