Faegre Baker Daniels represents issuers and investors in the full range of mezzanine financing transactions. Our clients include banks, institutional non-bank lenders, hedge funds and other investors, as well as private equity portfolio companies and other borrowers.

Our collaborative approach to practicing law is key to providing the many types of expertise that are critical to mezzanine financing. We combine our expertise in debt financing with knowledge in tax issues (including the determination of tax-appropriate investment vehicles and avoidance of AHYDO and similar potential tax liabilities), cross-border financing issues (including issues raised by foreign tax statutes and treaties), and bankruptcy (including the negotiation of post-filing issues in intercreditor and subordination agreements), among other areas.

Work on a transaction typically begins with a discussion of structuring issues: What are the essential terms of the financing? Will the investment be structured as debt, equity or some kind of hybrid? Will the investor receive warrants, or perhaps an immediate equity interest? Will the debt be convertible to equity? What terms will govern the relationships between both senior debt and any junior financing? Will the mezzanine debt be secured? If so, will the collateral include real property, intellectual property or other property requiring special handling? We review these and other questions with our clients to ensure that the proposed structure meets their needs.

We also provide guidance on and review of the underlying transaction as directed and appropriate. Our goal is to close the transaction on terms that meet our clients' deadlines, minimize risks and provide the deal that our client expects.