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Mezzanine Debt In The Age Of Covid-19

Mezzanine Debt In The Age Of Covid-19

Submitted by • May 12, 2020 www.attractcapital.com

Despite the Covid-19 crisis impact on many companies’ toplines, mezzanine lenders continue to lend. Their unique strengths give them the ability to continue to lend and help companies navigate the pandemic. Mezzanine debt lenders focus on the big picture of cash flow growth and flexibly determining debt capacity. Through using pro forma techniques and growth forecasting, mezzanine lenders look past temporary market conditions and rely on historical and future cash flow performance. As opposed to a bank, who may get bogged down with implementing new regulations, mezzanine lenders are agile and quickly adjust lending parameters to the new economic reality. So, what are the unique strengths of mezzanine debt lenders that position them as a critical cog in the direct lending market? It boils down to their credit expertise, pro forma awareness, and transitional capital expertise.

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