Document background
The Mezzanine Loan Term Sheet is a preliminary document used in sophisticated financing transactions where there is a need for capital that ranks between senior debt and equity in terms of risk and priority. This document is typically employed when companies require growth capital, acquisition financing, or restructuring funding, and traditional senior debt alone is insufficient. The term sheet, governed by Austrian law, serves as a roadmap for the transaction, outlining essential commercial and legal terms including the facility amount, interest structure, security package, covenants, and any equity participation rights. It must comply with Austrian banking regulations, corporate law requirements, and financial services legislation, while also addressing intercreditor relationships with senior lenders. The document is crucial for negotiating and documenting the final terms of the mezzanine financing and forms the basis for the detailed loan documentation that follows.
