Mezzanine Capital

Blake Street’s principals and affiliates have significant experience in structuring and arranging mezzanine capital, which is the layer of a company’s capital structure that bridges the gap between senior debt and equity. When structured properly, mezzanine capital expands a company’s borrowing capacity with less dilution to owners than issuing additional equity. Oftentimes, mezzanine capital represents a hybrid - a combination of debt and equity. Typically, mezzanine financing is constructed as an intermediate term note or coupon bearing instrument with some form of equity participation, or “kicker” attached as an additional enticement to the investor. The equity portion provides the investor with an interest in the upside of the issuer while the debt or coupon component provides a high level of cash payments. Blake Street assists clients in structuring, sourcing and executing the most optimal combination of these two components.

Our mezzanine capital capabilities include:

• Subordinated & High Yield Debt
• Subordinated Notes with Warrants
• Convertible Subordinated Notes
• Convertible Preferred Equity