Mezzanine financing

Available in Quebec only.

Also called subordinated or quasi-equity financing, a financial instrument that combines the features of both loans and equity financing. It falls between senior debt and equity in a company’s financing structure.

Mezzanine financing is offered by Desjardins Venture Capital to companies and co-operatives.

Features

• Offered in the form of a 3- to 5-year unsecured loan.
• Payment terms based on company forecasts.

Advantages

• Subordinated position to the lender, which can be considered as equity financing.
• Minimal dilution for shareholders.
• Lighter tax burden (interest is deductible).
• Exit method is defined beforehand.
• A portion of financing costs is linked to the company's success.

	At the caisse	Make an appointment with an advisor at a caisse.
	At a Desjardins Business Centre	Make an appointment with an account manager at a Desjardins Business Centre.