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Mezzanine capital: closing the gap between debt and equity

Mezzanine finance has come into its own over the last few months. Middle-market companies are finding it increasingly difficult to raise finance – new loans are harder to find and there is virtually no access to public capital markets. As a result, they are turning to mezzanine, says Fleet Capital, offering a wealth of opportunities for investors at this difficult point in the economic cycle.

Mezzanine financing is a hybrid form of capital, sandwiched between senior debt and equity on a company's balance sheet. It is typically used to fund a growth opportunity, such as an acquisition or new distribution channel, and has become critical to middle-market companies in recent months.

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This article was originally published on AltAssets through Fleet Capital. As a result of the merger of FleetBoston - the parent company of Fleet Capital - and Bank of America in 2004, Fleet Capital is now Bank of America Business Capital

Bank of America Business Capital, one of the world’s leading asset-based lenders, finances the needs of mid and large-sized businesses in the U.S, Canada and Europe. They provide asset-based loans from $10 million to $1 billion for working capital, acquisitions, turnarounds, recapitalization and DIP financing. For more information please visit www.bofabusinesscapital.com