Corporate Finance Capital Raising
MayerMeinberg can offer solutions to help middle-market companies that have unique financing requirements. The firm focuses on sourcing capital and structuring credit facilities that advance a client’s business and financial objectives.
Senior debt is typically the most common form of financing used by corporations, and debt comes in a variety of forms including secured and unsecured bank loans, long-term fixed rate term loans, and a number of other structured vehicles. MayerMeinberg can assist in leading the debt negotiations and organizing the business resources. Primarily sourced from commercial banks, senior debt is usually the most plentiful and least expensive source of funds available in a non-impaired credit market. Sometimes situations occur, however, when a company cannot source bank financing because of market constraints or when there is a precipitous decline in the underlying credit quality of the borrowing entity.
The universe of mezzanine and subordinated debt is populated with sophisticated financial institutions that have predefined lending criteria and yield parameters. The pricing, term and structural composition of this form of capital varies by lender. While mezzanine debt normally carries a higher interest rate and can have equity warrant features, it can also be tailored to meet the expanded tenor, covenant and monetary needs of the borrower.
There are nearly 2,000 institutional providers of private equity capital in North America. Similar to mezzanine debt, private equity firms have predefined investment criteria in terms of yield, industry preference and investment security type. Equity security types range from preferred to straight common stock, including synthetic variations of the two. While potentially the least costly in terms of coupon or interest rate, equity is normally the most expensive in terms of all in yield to the borrower.
*As an independent member of the BDO Seidman Alliance, MayerMeinberg has access to the resources of BDO Capital Advisors, LLC, for this service.