Mezzanine finance

Mezzanine financing is a hybrid of equity and debt financing.

Its main features are:

  • A combination of debt and equity;
  • Subordination to senior debt;
  • No security for repayment;
  • Flexible legal forms tailored to the diverse needs of financed entities.

Instruments used for mezzanine financing include, without limitation:

  • Bonds
  • Preferred shares
  • Convertible loans.

These instruments are usually only secured by a pledge on shares. An important feature of mezzanine financing is that the repayment of the principal (often one-off) is deferred.


Our role in obtaining mezzanine financing:

  • Selection of the appropriate form of financing – we support clients in the structuring of financing transactions;
  • Documentation – we prepare and negotiate financing documentation;
  • Opinions – we issue legal opinions on the validity and effectiveness of financial and security documents;
  • Due Diligence – we perform a due diligence investigation of the financed entity;
  • Post-transactional support – we provide post-transactional support, i.a. in the security registration process.