MEZZANINE DEBT
Providers of Smart
Money to Outstanding Businesses
Prudent Capital has a fund available to provide mezzanine debt to later stage, profitable, operating companies. For those qualifying businesses, we are pleased to offer a loan with the following terms:
2% origination fees
A 12 - 15% per annum current interest payment
Detachable warrants received to bring total annual internal rate of return to 22 – 25%
Interest only for up to 2 years if desired and fully amortized over a 3 - 5 year period thereafter
Loan amounts between $1 and $10 million
No prepayment penalties after the 2nd year and frequently a cap on our total return
To qualify for this loan, companies will be required to satisfy the following criteria:
Minimum of $5 million of annual revenue and $500,000 of annual EBITDA
History of consistent profitability
Ratio of free cash flow to Prudent Capital’s debt service of at least 2:1
Positive tangible net worth strongly preferred
Please call for more information