MEZZANINE FINANCING: DESCRIPTION
As the capital markets have required lower loan-to-value ratios in transactions, McKenna Long & Aldridge lawyers have been active in structuring and closing mezzanine and other high-yield structured financings to fill this gap created in the capital structure. These transactions have included mezzanine tranches or separate mezzanine facilities for single projects as well as large multi-state portfolios, "B" Notes or similar junior participations in securitized loans and other senior-subordinate debt transactions. Our lawyers are very familiar with the issues presented to mezzanine lenders, rating agencies and senior lenders in these financings and have the experience to achieve creative solutions to what are typically complicated negotiations.
Representative Transactions
-
Representation of agent bank in connection with a $175 million syndicated secured term loan facility secured by equity interests relating to approximately 140 apartment projects in connection with the "going private" of a $1.8 billion real estate investment trust.
Representation of holder of senior mezzanine tranche in a $100 million mezzanine loan that is subordinate to a $275 million securitized mortgage loan secured by a hotel and conference center in Tennessee.
Representation of investor in connection with the acquisition of a $17.2 million junior participation interest that is subordinate to the remaining $70.3 million senior mortgage interest that is included in a securitization pool, both secured by a hotel located in Texas.
Representation of investor in connection with the acquisition of a $25 million "B" Note that is subordinate to a $90 million "A" Note that is included in a securitization pool, both secured by an office building in Dallas, Texas.
Representation of major New York mortgage banking firm in connection with mezzanine loan of $11.7 million behind first construction loan of $61.7 million and bonds for related construction of approximately $35 million for retail shopping mall in central coastal California.