Document background
The Mezzanine Loan Agreement is a sophisticated financing instrument used when companies require additional funding beyond traditional senior debt but are not ready for pure equity investment. This document is particularly relevant in the Indonesian market where growing companies often need flexible financing solutions to fund expansion, acquisitions, or major capital expenditures. The agreement addresses key aspects such as subordination to senior debt, security arrangements, and equity conversion rights, while ensuring compliance with Indonesian financial regulations, including OJK (Financial Services Authority) requirements and Bank Indonesia regulations. The document typically includes comprehensive provisions for interest calculation methods, repayment terms, financial covenants, and detailed conversion mechanics, making it suitable for complex financing structures in the Indonesian context.
