US Capital Partners Doubles Unitranche Financing Over the Past Twelve Months

Smaller enterprises are increasingly benefiting from US Capital Partners’ unitranche financing solutions, which offer the advantages of speed, simplicity, and certainty of closing.

Throughout the past year, US Capital Partners, LLC has continued to experience rising demand for “unitranche” loans (also known as “senior stretch”), which blend senior and junior or mezzanine debt into a single debt facility. Rather than approach a senior lender, typically a bank, and then also one or more additional junior lenders, borrowers with a unitranche structure have a single secured loan facility, in which all the debt is subject to the same terms. US Capital Partners has increasingly been providing such loans for its clients..

Unitranche Solutions for the Small and Lower Middle Market

First created in 2005, unitranche loans were used primarily for middle market transactions, by borrowers with annual EBITDA of up to $50 million and sales of up to $500 million. A deal size of about $100 million was fairy typical. Today, however, this hybrid loan structure is being increasingly used in the small and lower middle market, in place of traditional bank financing.

Advantages of Unitranche Financing

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How US Capital Partners Can Help

The small-business lending marketplace continues to be highly fragmented. Specialty lenders are generally willing to lend only against their favored asset class. Finding the most appropriate mix of financing at the best cost, and then coordinating the different specialty lenders to a successful closing, can be a challenging process. In most cases, US Capital Partners has the ability to provide a single, unitranche loan to vastly simplify the situation.

To learn more about how your business can secure the funding it needs, email Jeffrey Sweeney, CEO and Managing Director, at jsweeney@uscapitalpartners.net or call
(415) 889-1010.

Jeffrey Sweeney