MCo.'s solutions

Capital needs
Patterns of mezzanine use

Corporate Mezzanine

Needs to raise additional capital due to temporary losses from operation but issuing common stock difficult due to decline in share price.
Needs to increase shareholder's equity with minimal dilution of voting rights.
Needs to stabilize financial position by refinancing current bank loans with long-term subordinate loans.
Needs to reduce debt payments and secure capital for business operations.

Needs growth capital but additional bank loan or common share issuance is difficult.

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New financing
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M&A Financing

Needs to minimize liquidity risk when acquiring companies.
Needs to secure large funding for acquisitions.
Needs to acquire companies with higher credit ratings.

Needs to execute an MBO but has limited investment capital.
Management has desire to keep 100% voting rights.

MBO (100% financed by management)

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