Mezzanine Debt

Fortitude Capital offers junior secured and unsecured debt to lower middle market companies to facilitate growth, acquisitions and/or recapitalization. Investments are typically between $1 million and $6 million, and larger transactions can be arranged with our financial partners on a club basis.

Investments can represent up to 1.0X EBITDA to an all-in maximum leverage of 5.0X EBITDA. Pricing is generally structured as interest-only for five years, with interest consisting of a cash component and PIK interest combined with some equity participation.

 

 

 

 

 

 

Mezzanine, or junior capital refers to a subordinated debt, preferred equity instrument or a combination of these two. It can be a tax-efficient source of long-term capital.