PRIEQUITY is a Private Equity firm that issues mezzanine debt. The in-house underwriting of PRIEQUITY can issue capital for most businesses, and the company will, in return, maintain a first lien position on the company. It is based on wall street in the financial district of New York City. In the recent development, it announced its deployment of $1 Billion in Mezzanine capital. The mission of PRIEQUITY is to allow businesses to obtain inexpensive capital to help grow their respective companies.
PRIEQUITY caters the institutional investors that vary clients from small to middle market companies globally. Moreover, In finance, mezzanine capital is any subordinated debt or preferred equity instrument that represents a claim on a company’s assets that is senior only to the common shares. Mezzanine financings by PRIEQUITY can be structured as debt (typically an unsecured and subordinated note) or preferred stock. Mezzanine capital is often a more expensive financing source for a company than secured debt or senior debt.
The higher cost of capital associated with mezzanine financings results from an unsecured, subordinated (or junior) obligation in a company’s capital structure (i.e., in the event of default, the mezzanine financing is only repaid after all senior obligations have been satisfied). Additionally, PRIEQUITY’s mezzanine financings, which are usually private placements, are often used by smaller companies and may involve greater overall levels of leverage than issues in the high-yield market; they thus involve additional risk. In compensation for the increased risk, mezzanine debt holders require a higher investment return than secured or senior lenders.
PRIEQUITY issues capital and approves on the merit of expertise and profit and loss statements. Mezzanine financing services by PRIEQUITY serve as the layer of financing that fills the gap between senior debt and equity in a company. It can be structured either as preferred stock or as unsecured debt, and it provides investors with an option to convert to equity interest. Mezzanine financing is usually used to fund growth prospects, such as acquisitions and business expansion.
A gap between senior debt and equity financing exists due to the following common reasons:
There is a substantial volume of intangible assets recorded on the balance sheets.
To address the rise in defaults and regulatory pressure, banks impose limits on the total debt that a business can acquire.
PRIEQUITY’s Mezzanine Financing Rate of Return
The basic form of PRIEQUITY’s mezzanine financing is unsecured debt and preferred stocks. As mezzanine financing is unsecured, it carries higher risks, and investors require a higher rate of return than secured lenders. Typically, it pays an investor 12-20%, which is higher than the rate of return on ordinary debt.
Intending investors must visit the following links to avail of their services: