Structured Capital Market Pricing & Terms
Interested in what kind of flexible structures funds are putting out to achieve mid to high teen returns. What are people seeing on pricing and structures these days on mezzanine, PIK notes, preferred equity, and other structured solutions? Have seen ~14% all-in on mezzanine with a mix of 12/2, 11/3, 10/4, etc. Give or take ~2% in either direction on the all-in. Have heard of some funds sticking with 2-3% upfronts. (HoldCo) PIK notes vary between floating and fixed. Seeing more floating with S+8-15%. NC1/102/101 type call pro not uncommon. At times funds will disguise a preferred equity piece as a PIK note but by and large will be 1.0x-1.5x liq pref only.