Competition Pushes Mezzanine Down-Market

Kantin, Kerry
April 2005
Investment Dealers' Digest;4/4/2005, Vol. 71 Issue 13, p12
Trade Publication
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.


Related Articles

  • The Risky Role of Alternative Lenders in the Leveraged Loan Market. Disimone, Anthony; Perri, Jason // High Yield Report;11/13/2006, Vol. 17 Issue 43, p3 

    The article focuses on the effect of high leveraged loan volumes on alternative lenders in the U.S. It is inferred that the U.S. companies' leveraged loans has increased by 29% in the first quarters of 2006, which will lead to a proportional increase in the volume of distressed debts. Thus,...

  • Hedge funds playing at private equity. Jarvis, Rebecca // Crain's Chicago Business;2/21/2005, Vol. 28 Issue 8, p25 

    This article informs that as hedge fund returns have begun to dwindle in an increasingly crowded field, managers of those funds have been attracted to the high returns sometimes found in private-equity investments. Most private-equity purchase agreements involve cash and debt and contain a...

  • Is the Easy Credit Party Over? Sweeney, Paul // Financial Executive;Sep2007, Vol. 23 Issue 7, p40 

    This article reports on the change in the investment climate among bank syndicates and hedge funds from borrower-friendly to cautious. "Covenant-lite" terms and risky debt finance structures are out of the picture after the skyrocketing leverage ratios of 2006 and early 2007. The author tracks...

  • THRUST AND PARRY. Robbins Jr., D.G.; Lewellen, Wilbur G.; Pettway, Richard H.; Fogler, Russell; El-Shaieb, A.M.; Fogler, H. Russell // Financial Management (1972);Summer72, Vol. 1 Issue 2, p10 

    This section presents comments and replies to articles and topics discussed in previous issues. In the Spring 1972 issue Professor Wilbur Lewellen argued that creation of a captive finance company failed at best to enlarge corporate debt capacity and possibly reduced it. D. G. Robbins Jr.,...

  • Get back on track. SCOTT, MARK // Smart Business Northern California;Feb2016, Vol. 9 Issue 3, p28 

    An interview with Rob Lake, head of Life Sciences Bridge Bank, is presented. Topics include struggling in finding debt providers for loan refinance as clue that a company is overleveraged, using financial metrics to identify the right amount of debt for business, and collaboration with...

  • Give debt a chance. Rudek, Rich // America's Network;4/15/2002, Vol. 106 Issue 6, p37 

    Considers debt financing as a source of cash flow for companies. Comparison between management costs involved in equity and debt financing; Relationship of borrowers with lenders; Benefit that telecommunication sector companies can get from asset-based lending.

  • Northumbrian deal may revive equity.  // Utility Week;7/18/2003, Vol. 20 Issue 5, p3 

    Reports on the support shown by lenders for the debt relisting of water utility Northumbrian in Great Britain in 2003. Reason for the popularity of debt with water companies; Warning issued by bankers to lenders in relation to the Northumbrian deal; Results of a survey by Deloitte & Touche on...

  • Cyprium Backs Network Hardware Resale. CODY, TAMIKA // Mergers & Acquisitions Report;7/4/2011, Vol. 24 Issue 27, p5 

    This article reports on the move of Cyprium Investment Partners to use its third fund to invest in Network Hardware Resale in 2011. The pre-owned and new networking solutions provider has received subordinated debt and equity from the private equity firm. The financial backing will enable the...

  • Hedge funds attack 'irresponsible' Co-operative Bank. Jackson, Gary // Money Marketing (Online Edition);9/3/2013, p14 

    The article reports on the criticisms raised by U.S. investment bank Moelis & Co. against Great Britain's Co-operative Bank for lack of engagement in its debt restructuring efforts. The investment bank reacted after Co-operative Bank confirmed that it would only negotiate with bondholders after...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics