Veronis Suhler Stevenson adds Mezzanine fund.Veronis Suhler Stevenson is a leading merchant bank specializing exclusively in the media, communications, and informaton industries. VSS See Vcc. also provides a full range of services to media owners, including advisory on a variety of M & A and corporate financial transactions, private equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. , and now mezzanine capital investing, as well as in-depth research on the communications industry. In making mezzanine investments, VSS Mezzanine Partners LLP LLP - Lower Layer Protocol strives to partner with proven owners and managers through the financing of acquisitions, management buyouts, going-private transactions, growth equity investments, and recapitalizations. Mezzanine Captial managing directors George L. Cole and Errol R. Antzis answered NL/NL's request for a definition of mezzanine investments: "Mezzanine investments are typically structured as subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". with an equity enhancement, usually warrants. The investment is provided as non-control capital, as opposed to a straight equity investment, which is often (but not always) provided upon only ceding control to the investor. "Mezzanine capital is junior in rights and security to any bank (senior) debt, and is generally structured with more flexible covenants and a somewhat longer maturity. In addition, the interest component of the mezzanine tranche can comprise a combination of current pay interest and PIK PIK See: Payment-in-kind bond PIK See payment-in-kind security (PIK). (paid-in-kind or deferred) interest, providing additional flexibility to the issuer. "Principal is usually repaid in a lump sum Lump sum A large one-time payment of money. upon maturity, although it can be amortized during the life of the investment. "Uses of mezzanine include providing capital for organic growth, acquisitions, capital improvements, and buying out partners or other investors. "So, in sum, mezzanine: * "Is subordinated to senior indebtedness; * "Has more flexible covenants and a longer maturity; * "Is provided as non-change-of-control capital; and * "Is used to supplement exisiting debt to enhance a company's ability to grow or recapitalize." VSS, 350 Park Avenune, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY 10022, 212-935-4990, George L. Cole, 212-381-8435, coleg@vss.com, Errol R. Antzis, 212-381-8426, antzise@vss.com |
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