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Quasi-equity and mezzanine financing arrangements require sophisticated and detail-focused legal support combined with savvy and responsive deal management to ensure transactions are well structured and profitable for all parties involved.

Mezzanine financing typically takes the form of subordinated, unsecured debt, such as preferred stock, convertible securities and high-yield style debts. As a result, mezzanine investors generally receive a higher return than more traditional forms of debt financing. Moroğlu Arseven has notable experience supporting clients to navigate the legal aspects of this environment, with emphasis on strategic commercial considerations, as well as managing inter-creditor relationships and related conflicts.

Moroğlu Arseven has extensive experience in this context, assisting clients during financing for management buy-outs, tender offers, bridge financings, growth capital, recapitalisations, as well as portfolio acquisitions and sales. Our support also includes complicated issues regarding entity valuation and investment exit mechanisms for the equity aspects of such transactions.

Moroğlu Arseven works closely with clients from the early stages of an investment, to identify critical issues, then build robust alternatives to mitigate and allocate risks.

As hybrids between debt and equity, effective legal advice for quasi-equity and mezzanine capital issues should draw together diverse areas of legal expertise. Moroğlu Arseven’s cross-discipline approach means the firm can identify potential problems, often early in a deal. In turn, this proactive approach reduces disputes, risks and unnecessary costs for our clients, as well as ensures these financial arrangements best support our clients’ objectives.

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