TITLE

Competition Pushes Mezzanine Down-Market

AUTHOR(S)
Kantin, Kerry
PUB. DATE
April 2005
SOURCE
Investment Dealers' Digest;4/4/2005, Vol. 71 Issue 13, p12
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
The article reports that mezzanine lenders are providing debt financing for lower middle-market companies. The lower middle market, in the view of many market participants, is made up of companies with about $20 million or less in Ebitda which is earnings before interest, taxes, depreciation and amortization. The decision for mezzanine players to move down the Ebitda ladder is, in part, due to being squeezed out of business by hedge funds. In addition to facing competition from hedge funds, the mezzanine market has become more crowded. With credit spreads extremely tight, mezzanine players find the lower middle market's deal pricing to be attractive.
ACCESSION #
16639946

 

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