Flexible capital solutions that bridge debt and equity.

Mezzanine & Subordinated Debt

Typical Range: $100K – $10MM+ Use Cases: Expansion • Recapitalization • Acquisition • Buyout • Growth

Overview

Nabesna Capital structures mezzanine and subordinated debt financing for companies that have outgrown traditional lending but want to retain ownership and control.

This form of hybrid capital sits between senior secured debt and equity — providing additional leverage for expansion, recapitalization, or acquisition without diluting shareholders.

We arrange mezzanine and subordinated facilities through private credit funds, institutional investors, family offices, and non-bank lenders who understand the risk profile and growth trajectory of middle-market businesses.

Who This Program Serves

This program is designed for established, cash-flowing businesses that need flexible, patient capital to fund strategic growth initiatives, including:

We work with owners and acquirers across industries such as manufacturing, logistics, construction, healthcare, and professional services — anywhere long-term enterprise value supports additional leverage.

Typical Terms

  • Loan Size: $100K – $10MM+

  • Leverage: Typically layered above senior secured debt

  • Term Length: 3 to 7 years

  • Structure: Subordinated or unsecured debt; may include equity kicker, warrants, or profit participation

  • Rate Structure: Fixed or floating; pricing reflects risk, subordination, and equity component

  • Collateral: Often unsecured or second lien behind senior lender

  • Repayment: Interest-only or PIK (payment-in-kind) options with balloon principal repayment at maturity

When to Consider This Loan

  • The company has reached traditional bank leverage limits but needs more capital for growth.

  • You’re executing a partner buyout or ownership transition that requires flexible funding.

  • An acquisition or recapitalization needs a gap layer between senior debt and equity.

  • You want to avoid equity dilution while pursuing expansion.

  • You’re preparing for a future refinance, sale, or liquidity event.

Why Choose Mezzanine or Subordinated Debt

  • Preserves ownership: Offers growth capital without immediate equity dilution.

  • Enhances flexibility: Can be structured with deferred or interest-only payments.

  • Bridges funding gaps: Fills the space between senior loans and investor capital.

  • Supports recapitalization: Improves balance sheet strength before refinancing or sale.

  • Aligns incentives: Investors earn returns tied to company performance, not just collateral.

Why Work with

Nabesna capital

  • Specialized structuring experience: We model capital stacks that align risk and return for all participants.

  • Capital network: Access to private lenders, family offices, and mezzanine credit funds nationwide.

  • Customized solutions: Tailored repayment schedules, performance triggers, and hybrid equity features.

  • Execution-driven process: We coordinate senior lender and mezzanine participation to close efficiently.

From growth-stage expansion to ownership realignment, Nabesna Capital delivers sophisticated capital solutions that strengthen balance sheets and preserve control.