Deschutes Capital provides subordinated debt, mezzanine financing and cash flow loans to middle market companies with revenues in excess of $25 million. Whether you need middle market financing for:

• a leveraged acquisition or leveraged buyout,
• management buyout,
• emerging growth opportunity,
• corporate debt refinancing,
• mergers and acquisitions financing,
• recapitalization, or
• corporate restructuring,

Our middle market corporate finance services are flexible, creative and aggressive. We will help private equity sponsors, corporate acquisition groups, chief financial officers (CFO's) and treasurers through the maze of subordinated debt alternatives and subordinated loan sources to obtain a competitive rate. Our strength in structured finance and specialization in leveraged financing brings value added services to our clients. We pride ourselves on integrity, knowledge and relationships to deliver the service you deserve.

To qualify for leveraged cash flow financing, your company or the company being acquired, should be able to maintain a total interest coverage ratio of approximately 1.2, with the necessary interest coverage ratio depending on market conditions and the company's projected growth rate. Acquisition valuations should be in excess of $25 million at three (3) to five (5) times EBITDA, with subordinated debt not exceeding 20% to 30% of that value. Typically interest only payments are permitted for the initial one (1) to three (3) years with an interest rate in the Prime + 2% to 8% range and repayment within three (3) to eight (8) years. In addition, equity warrants are usually required to compensate the lender for the level of risk. Asset based subordinated debt alternatives are available also.

Deschutes Capital appreciates the opportunity to explain our commercial finance online services and structured transactions. Whether you want additional financial leverage with a subordinated loan to complete a merger or acquisition, to exploit growth opportunities or refinance a commercial loan, contact Deschutes Capital today. Click below to submit an inquiry or to discuss your subordinated debt needs. Deschutes Capital, making corporate finance online work.