Document background
The Mezzanine Loan Agreement under Danish law is utilized when companies seek flexible financing solutions that bridge the gap between senior debt and equity. This document is particularly relevant for acquisitions, growth financing, or restructuring scenarios where traditional senior debt is insufficient or unavailable. The agreement details the terms of the mezzanine facility, including interest structures (often combining cash and PIK interest), security arrangements, subordination mechanics, and conversion rights if applicable. It carefully balances the interests of all stakeholders while ensuring compliance with Danish financial regulations and market practices. The document is essential for transactions requiring complex financing structures and typically works in conjunction with senior facility agreements and intercreditor arrangements.
