Mezzanine capital is a layer of a company’s capital structure that bridges the gap between senior debt and equity and is typically used by a company in transition. This transition may result in strong internal growth, a significant acquisition opportunity, or a change in ownership. Even for the most successful companies, these events can exhaust a company’s borrowing capacity with its Senior Debt lenders, limiting growth and reducing financial flexibility. Claritas Capital Mezzanine financing is designed to help companies become more successful by enabling a company to leverage its cash flow. When structured properly, mezzanine can expand a company’s borrowing capacity with less dilution to owners compared to the issuance of additional equity.

Business services, health care services, and manufacturing companies with a favorable outlook for sustainable or growing revenues coupled with a proven and balanced management team will be attractive mezzanine financing opportunities.