Document background
The Mezzanine Loan Agreement under Singapore law is utilized when companies require financing that bridges the gap between senior debt and equity financing. This hybrid instrument typically offers flexible terms and higher returns for lenders while providing borrowers with less dilutive funding compared to pure equity. The agreement must comply with Singapore's regulatory framework, including banking and securities laws, while addressing complex intercreditor relationships. The document includes detailed provisions on interest payments, security arrangements, conversion rights (if applicable), and subordination mechanisms, making it a crucial tool for growth financing and strategic transactions.
