Document background
The Mezzanine Loan Agreement under Dutch law is utilized when companies require financing that bridges the gap between senior debt and equity capital. This document is particularly relevant in acquisition financing, growth capital, or restructuring scenarios where traditional senior debt is insufficient or unavailable. The agreement details the terms of the mezzanine facility, including interest payments (often with both cash and PIK components), subordination provisions, security package, and potential equity-linked returns such as warrants or conversion rights. It incorporates specific Dutch law requirements for enforceability and security creation, and addresses intercreditor relationships with senior lenders. The document is crucial for implementing complex financing structures while ensuring compliance with Dutch financial regulations and corporate law.
