development finance
SENIOR DEBT
STRETCHED SENIOR
MEZZANINE DEBT
Senior Debt is the foundation on which all development finance capital stacks are constructed. Ensuring the best senior debt solution is therefore essential to the success of any development project. We work with a full range of providers from high street banks and challenger banks through to niche development lenders and debt funds to ensure the best fit with both the client and the project requirements.
Stretched Senior is senior debt with an increased loan to cost and/or loan to value. Stretch senior has the advantage of increasing the available funding, without the need for mezzanine finance. This can have the advantage of reducing the overall blended cost of the debt package and also producing a smoother more cost-effective solution due to the removal of any additional charges or legal fees associated with a second lender.
Mezzanine Debt or “Mezz” provides a facility that reduces the gap between the senior debt and the equity required to be injected by the borrower. Mezzanine debt is a useful tool to increase loan to cost and loan to value, where a borrower does not have the available capital to meet the equity requirements of the senior lender. Typically, mezzanine debt will take a second charge security position behind the senior lender.
Made with FlippingBook - Online magazine maker