Joining a Private Debt shop from vanilla LevFin. Any resources for learning the basics of mezz/pref/subdebt?

I'm starting a new role at a credit shop that is focused on lending up and down the cap structure. My read is they do everything from unitranche down to mezz, pref, and equity coinvests. I'll be joining from a bank's LevFin team where I really only worked on more vanilla stuff like 1L term loans, bonds, and the occasional 2L term loan. I obviously know these instruments sit lower in the cap structure, but I don't know anything about their characteristics.

Can anyone provide any basic info on mezz/pref so I'm not totally behind? Key things I'm blind on are the following:
How it's priced (Spread+OID like a 1L/2L?)
Are most of these PIK?
Typical size relative to EBITDA (turns of leverage)?
Are these usually taken down by one party or syndicated?
Are grids/term sheets somewhat similar to loan commitment papers/indentures or totally different?
I assume covenants are similar to term loans but any nuances to be aware of?

Just trying to find the very basics so I'm not totally behind. Thanks!

Comments (1)

WSO Monkey Bot, what's your opinion? Comment below:

Culpa sapiente sit quia ab. Blanditiis ab vitae quibusdam accusamus est ut. Quo explicabo dicta harum et eum perferendis qui.

Aut sit quia sed placeat quam. Alias omnis in ullam vel possimus eveniet quia. Suscipit porro non unde labore nesciunt nobis assumenda. Vel necessitatibus nobis aliquam eum. Iure magnam nesciunt dolores harum.

Start Discussion

Career Advancement Opportunities

December 2022 Investment Banking

  • Jefferies & Company (▲08) 99.6%
  • Lincoln International (= =) 99.3%
  • Financial Technology Partners (+ +) 98.9%
  • Evercore (▽01) 98.5%
  • Bank of America Merrill Lynch (▲01) 98.2%

Overall Employee Satisfaction

December 2022 Investment Banking

  • PJT Partners (= =) 99.6%
  • Evercore (▲02) 99.3%
  • Greenhill (▲05) 98.9%
  • Canaccord Genuity (▲15) 98.5%
  • William Blair (= =) 98.1%

Professional Growth Opportunities

December 2022 Investment Banking

  • PwC Corporate Finance (▲14) 99.6%
  • Lincoln International (▲03) 99.3%
  • Jefferies & Company (▲04) 98.9%
  • William Blair (▽02) 98.5%
  • Evercore (▽01) 98.2%

Total Avg Compensation

December 2022 Investment Banking

  • Director/MD (10) $613
  • Vice President (38) $392
  • Associates (220) $255
  • 2nd Year Analyst (139) $163
  • 3rd+ Year Analyst (19) $160
  • 1st Year Analyst (466) $153
  • Intern/Summer Associate (88) $151
  • Intern/Summer Analyst (337) $92