Hi All - I’m working on a transaction that will be financed with some mezzanine debt. I have never worked on one with this financing component so I would appreciate some input regarding how to model it.
The debt has a 3% up front payment fee, penny warrants for 2% of the fully diluted equity, 12% cash interest, 1.5% PIK interest, and a 6 year maturity.
Thanks in advance.
| +106 | Is Everyone Too Bearish on PE? | 34 | 23h |
| +48 | Why would anyone do PE in long term in 2026? | 13 | 1d |
| +35 | MF Tech PE 2026 | 7 | 20m |
| +24 | Q&A: What It’s Actually Like Working at an Independent (Fundless) Sponsor | 4 | 3d |
| +22 | Do you think PE has actually helped you become a better entrepreneur? | 8 | 15h |
| +21 | Striking out in last rounds | 2 | 4d |
| +21 | UMM PE or High Paying Strat Finance? | 13 | 1d |
| +16 | Portfolio Marks | 8 | 12h |
| +15 | DELETE | 1 | 2d |
| +15 | Overwhelmed by amount of data / granularity | 3 | 2d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Accusantium iure dolore ipsa in quod. Et ut voluptatum voluptatum quas quasi voluptatem nulla. Animi eius qui eaque accusantium debitis beatae dolorum laudantium. Dolores dolor rerum ducimus sed. In sit et aut sint ducimus laborum fugit. Est repellat ut sed nulla sit quaerat cum.
Id occaecati placeat aliquam facere. Tempore ut odit cumque. Atque sequi tenetur doloribus quod. At dolore neque earum exercitationem.
Deserunt necessitatibus dolorem velit officiis autem voluptatibus voluptatem. Dicta vel distinctio tenetur dolorem enim consequatur.
Impedit sit molestias ratione neque. Id eveniet deleniti quia delectus nostrum eum. Dolores consequatur maxime doloribus vero est minus ab. Explicabo suscipit ex sit neque illo accusantium. Consequuntur nemo unde molestiae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...