Mezzanine Financing 2023
Posted on Apr 11th, 2023
I’m Davis Vaitkunas, and welcome to Bond Capital TV. A few sites and insights as we look forward into 2023. After a year of rising interest rates, high inflation, and lots of interlopers coming into our economy, we’ve all gonna be wondering what’s in store for us next. What we’re seein is more conservative banks, interest rates affecting values, and transactions being more difficult to close because of a gap evaluation.
Discount rates obviously are affected by the rise of interest rates which is causing buyers to want to pay less. And sellers are still looking for last year’s prices. It’s probably going to be a slow deal season as we look into the next couple of quarters. On the other hand, if you do need financing we’re seeing lower loan to value from the banks running in the mid-50s, we’re seeing a lot more room for mezzanine debt and junior credit and structured credit. If you’re looking for solutions, that require capital, you should be considering further alternatives, to just a standard bank package. We’re also seeing a rise in prices, and we think that’s what’s going to carry us for forward for the next couple of quarters. Thank you for listening. We’ll have another insert with a few more insights coming up shortly.