Subordinated Debt

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NEW MARKETS TAX CREDIT INVESTMENTS CAN BE PLAUSIBLE ALTERNATIVES TO TRADITIONAL SUBORDINATED DEBT

Many companies face challenges arising from balancing the right amount of leverage with access to capital markets and the cost of debt service.  Many senior lenders will cap out their senior debt investments at or around three times leverage.  For companies that require additional debt to finance major corporate transactions, finding the right subordinated lender at the right price can be a challenge.  In some deals we’ve seen recently, middle market sub debt pricing ranges from 10-12% per year with another ... Read more