Document background
The Mezzanine Debt Term Sheet is a critical preliminary document used in sophisticated financing transactions where there is a need for flexible funding solutions that sit between senior debt and equity in the capital structure. This document is specifically tailored to comply with Austrian legal requirements and market practice, incorporating necessary provisions under Austrian banking laws, corporate regulations, and capital markets requirements. It serves as the basis for negotiation and subsequent detailed documentation, outlining essential terms such as pricing, tenor, security package, covenants, and any equity-linked elements. The term sheet is typically used in scenarios such as leveraged buyouts, growth capital financing, acquisition financing, or corporate restructuring, where traditional senior debt alone may not be sufficient or appropriate for the transaction structure.
