Mezzanine Finance
Shipman’s mezzanine finance team provides sophisticated, cost-effective representation in mezzanine financings supporting portfolio company acquisitions by private equity sponsors and providing growth capital for existing businesses. We represent mezzanine funds, insurance companies, and SBIC’s in both mezzanine debt financings, unitranche financings, and financings with an equity co-invest. Unlike many larger firms which split the debt and equity functions, often resulting in inefficiency, our team handles both the debt and equity components of the transaction, resulting in a more efficient and cost-effective closing process. We have expertise in drafting and negotiating intercreditor and subordination agreements.
Shipman also represents many Small Business Investment Companies (SBIC’s) in connection with their investments in portfolio companies. We represent SBIC’s in structuring, negotiating, and closing both debt and debt with equity co-invest transactions, and we advise our SBIC clients with respect to ensuring that their deal structures comply with SBA regulations and operating procedures. We are active in the leading SBIC trade group and provide our SBIC clients with up-to-date knowledge of SBA regulations and developments.
Our representation of mezzanine and SBIC clients includes:
- Representation of insurance companies, mezzanine funds and other investors in connection with debt and equity investments, including acquisition financings, leveraged buy-outs, recapitalizations, and junior capital financings
- Representation of SBICs in connection with equity and debt/equity investments in portfolio companies, including LMI investments
- Representation of debt and equity investors in connection with workouts of troubled investments and investment recovery
- Negotiation of intercreditor and subordination agreements, drafting and review of mezzanine loan documents, and drafting and review of equity documents
