Complementary Subordinated Debt

Complementary Subordinated Debt/One-Stop: In those situations where MFC Capital Funding is also the senior debt provider we will selectively consider providing subordinated debt to facilitate a one-stop senior/subdebt transaction. We will not provide subordinated debt by itself on a stand alone basis.

In addition to the characteristics outlined for Sponsor Backed Cash-Flow Multiple loans, a Complementary Subordinated Debt/One-Stop structure typically involves a borrower that also possesses the following characteristics: (a) a strong management team with meaningful ownership in the company; (b) high EBITDA margins (EBITDA greater than 10% of sales); and (c) significant opportunities for growth.

Our complementary one-stop subordinated debt will typically range in size from $1 million to $5 million. Structurally we will provide this debt as traditional subdebt, but will also blend this debt in with our senior debt, in the form of a non-subordinated senior secured Term B loan with minimal annual amortization.

We do not provide stand alone subordinated debt, as that is provided by our sister company, Marquette Capital Partners. We also have developed excellent working relationships with numerous other stand-alone mezzanine funds. Please do not hesitate to contact us for appropriate introductions.

Senior Secured Loans
LBO Equity Fund Investments
Equity Co-Investments