Document background
The Mezzanine Debt Term Sheet is typically used in German financing transactions where companies seek funding that sits between senior debt and equity in the capital structure. This document is essential in the preliminary stages of mezzanine financing arrangements, setting out the fundamental commercial and legal terms that will form the basis of the final financing documentation. It is particularly relevant for growth financing, acquisition financing, or restructuring scenarios where traditional bank financing may be insufficient or unavailable. The term sheet must carefully consider German legal requirements, particularly regarding subordination, insolvency rankings, and financial services regulations. It serves as a roadmap for lawyers drafting the final documentation and provides key stakeholders with a clear understanding of the proposed terms.
