EUROPE - Mezz cashes in on new markets

One man’s loss is another man’s gain and nowhere is this clearer than in the subordinated debt market right now. Anecdotal evidence suggests the layer is set for its headiest days yet, with mezzanine now accounting for up to 2x EBITDA on average in a deal, up from 1.0-1.5x six months ago. And it’s not just the quantity – quality is also on the up, with pricing more favourable for traditional mezz lenders and warrants back in a big way.