Bridge Financing

A Bridge Loan by its nature is to help facilitate mergers and acquisitions where the buyer or merger partners desire to close a deal quickly, but prior to having finalized the permanent capital structure. The loan can provide a senior bridge with terms from 3 to 6 months in amounts up to $100 million. The loan is collateralized with assets and is funded following the infusion of equity by the transaction’s principal(s). This loan is designed to obtain time for the buyers to take the target company off the market and negotiate their permanent financing terms in a more realistic time frame. Due to the expedited process and short term involvement, pricing is typically at the higher rates and fees associated with subordinated debt.