- Overview
- Bridge Financing
- Mezzanine Financing
- Note Purchases
- Recapitalization of Existing Ownership
- Corporate Finance
Affiliates
Mezzanine Financing
Canyon is very active in providing mezzanine financing collateralized by either a direct lien on the underlying real estate or a lien on the ownership interests in the real estate. Loans range from $7.5 million to $75 million and are typically for a term of 2 to 5 years. Canyon's programs are very flexible and can include interest coupons structured as current pay or accrual and amortization schedules ranging from interest only to fully amortizing. Canyon financing can be used by owner/operators of real estate (i) to complete new acquisitions or build-to-suit developments; (ii) to conclude the recapitalization of existing assets; (iii) to repurchase existing debt from current lenders, often at a discount; (iv) to acquire existing performing/non-performing mortgages collateralized by local properties; (v) to acquire certain equity interests of limited partners in existing partnerships, often at a substantial discount due to the illiquid nature of these interests; and (vi) to develop commercial projects which are positioned to produce income within a reasonable period of time.
Mezzanine Loans
- Loan Size: $7.5 to $75 million
- Maturity: Up to 5 years
- Amortization: All
- Security: 100% pledge of ownership, 2nd lien Inter-creditor agreements are typically required.
- LTC: Up to 85%
- Interest Rate: as low as 14%
- Upfront Fees: Between 1% and 3%
- Lockout: Negotiable, typically 12 months
- Equity Participation: None
- Closing: As fast as 2 weeks
- Property Types: All
- Recourse: Non-Recourse
Uses
- Acquisitions
- Construction
- Recapitalizations
- Repurchase of Borrower's Existing Debt
- Refinance asset based lenders
- Short term sale/leasebacks
- DIP Financing
