hard · Private Credit & Debt loan-structures-instruments
A mezzanine lender's 'Equity Kicker' is typically structured in which form to provide upside participation?
- A step-up in the cash margin if the company's leverage exceeds 5.0x.
- A senior lien on the company's intellectual property assets.
- A 'Make-Whole' provision that guarantees a minimum IRR if the loan is prepaid.
- Detachable warrants for a small percentage of the company's common equity.
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