PREFERRED EQUITY
Providers of Smart
Money to Outstanding Businesses
Prudent Capital has a fund available to provide mezzanine equity to later stage, profitable, operating companies. For those qualifying businesses, we are pleased to offer preferred equity with the following terms:
2% origination fees
No current dividend payments required, dividends accumulate at the rate of 15% per annum
Preferred equity is redeemable within 3 to 5 years with accumulated and unpaid dividends
Detachable warrants received to bring total annual internal rate of return to 35%
Preferred equity investments of between $.5 and $2 million
To qualify for this capital, 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
Usually provided in conjunction with mezzanine debt, but not always
Significant junior equity invested in the company
Please call for more information