Asset-baced or cash flow based
No equty dilution
Interest rate exposure if not fixed
Flexible principal amortization
Capital resource between debt and equity
Maximize leverage with littleto no equity dilution
Fixed interest ratr with no amortization
Achieves maximum liquiudity with higher asset dilution
Typically funded b private equity or institutional investor
Common equity requires control position, while preferred equity does not
Senior Debt
MEZZANINE
EQUITY
Liquidity
Cost of Capital/
Investor Growth Expectations