Junior Secured Loan
A junior secured loan is structured with a junior lien behind the senior lender or as a first lien on intangible or other non-working capital assets. A junior secured loan can support:
- Acquisitions
- Restructures and refinancings
- Turnarounds supported by quantifiable or existing cost savings that will return the company to profitability
Deal Size
- Primarily for companies with at least $50 million in revenue
- Minimum total deal size is $5 million (junior secured) and $25 million (senior plus junior) in total financing
Collateral Monitoring
- Reporting capabilities that include at least weekly collateral monitoring
- Field examinations at least quarterly and monthly if appropriate
- Asset appraisals provided and updated at least semiannually