Mezzanine Debt Lending
Also referred to as a second mortgage and or subordinated debt finance, PFG has established for itself a strong record of structuring mezzanine debt facilities that has assisted many clients that would otherwise have had to source expensive equity to projects.
Mezzanine debt finance assists the client in bridging the gap between the first mortgage finance offered and the funds required to complete a transaction. It is priced at a higher rate to reflect the risk of the funds in the transaction however when coupled with the overall finance cost of the transaction is a very useful and relatively inexpensive resource for financing property development, large Investment transactions and bridging arrangements.
PFG has a bank of Private Investors, Institutions and Investment Banks that actively invest in this form of finance. Given PFG’s experience in packaging mezzanine debt arrangements this form of finance is readily available for appropriate transactions and with its proper use can easily add considerable value to a client’s project and or transaction.