Read the remedies
Missed payments or covenant breaches can transfer control or trigger enforcement rights.
Structured capital / debt
Mezzanine Debt
Additional financing between the senior loan and sponsor equity.
Explore representative terms
01 / Program overview
Where it fits.
Mezzanine debt can address a financing gap between the senior mortgage and sponsor equity. Kiser evaluates combined debt service, ownership pledges and intercreditor requirements against the project’s repayment strategy.
Suitable transactions
- Address a funding gap in an acquisition or recapitalization.
- Evaluate additional capital alongside permitted senior financing.
- Compare ownership dilution, payment burden and sponsor control.
What we evaluate
- Senior loan restrictions and required lender consent.
- Combined obligations, cash flow and sponsor cash remaining at risk.
- Exit proceeds after senior debt, fees and all accrued amounts.
02 / Market guide
Representative
Market Terms
A starting point for evaluating the structure. Final terms depend on the property, sponsor, business plan and capital provider.
Discuss your scenario| Parameter | Guideline / consideration |
|---|---|
| Loan size | $1M to $100M+ Size and availability depend on the transaction and capital provider. |
| Combined leverage | Evaluated across the full capital structure. Senior debt, subordinate capital and sponsor equity are reviewed together. |
| LTC | Project-specific. Cost eligibility and required sponsor equity are reviewed for each transaction. |
| Term / exit | Aligned with the senior financing and investment exit. Confirm maturity, redemption and extension requirements. |
| Coverage | Based on cash flow after senior obligations. Evaluate the combined payment burden and any accrued amounts. |
| Pricing / benchmark | Negotiated for the transaction. No live return or coupon is represented. Historical term-sheet pricing requires a fresh quote. |
| Payment structure | Current-pay, accrued or a negotiated combination. Review compounding, distributions and any scheduled capital reductions. |
| Priority / security | Generally secured by a pledge of ownership interests. Priority and enforcement rights depend on the executed agreements. |
| Sponsor contribution | Negotiated cash equity and liquidity requirements. Additional capital-call obligations must be explicit. |
| Control / consent | Protective rights and major-decision consent are negotiated. Review transfer, budget, financing, sale and default provisions. |
| Recourse / support | Any guarantees or additional collateral are negotiated. Review support obligations with the transaction documents. |
| Prepayment / redemption | Review minimum return and exit fees. A right to repay or redeem does not mean there is no cost. |
| Reserves | Review senior escrows and additional liquidity needs. Avoid counting the same cash twice. |
| Closing timeframe | Established after the initial review. Reports, documentation, approvals and the transaction schedule determine timing; no guaranteed closing period. |
| Eligible properties | Commercial and multifamily properties that fit the capital provider’s criteria. Eligibility depends on the property, operating plan and senior financing. |
| Geography | Location reviewed with the capital provider. Property location and capital-provider coverage are reviewed early in the process. |
Representative terms are subject to market conditions, underwriting and lender or investor approval. Actual proceeds and structure depend on the transaction.
03 / Structure matters
Look beyond
the headline.
Model the full cost
Current payments, accruals, fees and minimum returns can materially change the amount due at exit.
Start with the property
Let’s discuss the next step.
Share the property type, business plan and timing. We’ll use that context to evaluate the capital strategy.
Discuss Mezzanine Debt