Mezzanine Financing Resource Kit


Summary

This resource kit provides guidance on mezzanine financing. A mezzanine loan is a type of subordinate loan that is indirectly, rather than directly, secured by real property. Though the actions taken by counsel will vary depending on the nature of the transaction and the jurisdiction, the work flow of most mezzanine financing transactions is as follows: (1) the mezzanine lender conducts its due diligence review; (2) the mezzanine lender's counsel prepares the loan documents, which are typically based off of the primary lender's documents, and the borrower and the guarantor(s) review and negotiate the terms of the documents until all parties agree they are in final form; and (3) the closing documents are prepared and executed at the closing.