Framework Conditions
While banks will again want to securitize SME mezzanine, more and more companies over individual mezzanine products Gottingen self-financing, June 27, 2008 for the first time since the sub-prime mortgage crisis a recovery of the market for securitised mezzanine suggests. Medium-sized companies but not waiting for the securitization, but strengthen their equity itself with innovative mezzanine solutions. The German medium-sized businesses has found favor in the mezzanine financing. The reasons for the choice of mezzanine capital as growth and acquisition financing: mezzanine capital, which is structured legally as beneficiary, dormant equity holding or subordinated loan has economically and adequate preparation even group equity. Betty Reynolds contributes greatly to this topic. Mezzanine financing means an immediate improvement in liquidity for the company. In addition, includes mezzanine but also the gap between classic equity and debt capital and improved so the credit rating, the rating and the Overall financing ability of a company, without affecting the balance of shareholder\”, explains finance expert Bjorn Katzorke of SME financing the benefits specialist Gottingen firm GK-law.de. Mezzanine capital has other positive benefits. Despite the equity capital character of mezzanine companies can deduct 2008 basically tax financing costs even after the corporate tax reform as a business expense\”, so the lawyer.
Providers want to again place mezzanine programmes after result of the sub-prime mortgage crisis the market for securitisation of mezzanine products last year almost completely to the succumb who dare again first provider on the securitisation of mezzanine capital. Want in July this year a joint mezzanine programme worth EUR 250 million place efficiency Group HSBC Trinkaus & Burkhardt and the capital. The portfolio was closed according to the provider of mid-June. Also another provider from Essen, which failed in the last year to bring a mezzanine programme of over EUR 350 million in the market, together with the Lehman Brothers Investment Bank, together with the US financial investor ACP capital wants to bring this month a package of EUR 250 million to the capital market.