Consolidate Debt and Accelerate Strategic Goals
Unitranche Lending
Customer Testimonials
Unitranche Lending Services
Unitranche Lending provides a single, blended interest rate for what would otherwise be two or more layers of debt. This approach removes the need to negotiate separate agreements with senior and mezzanine lenders, often expediting the entire funding process. For companies undergoing mergers, acquisitions, or large-scale expansions, unitranche structures offer greater clarity, faster closings, and more predictable payment obligations.
At Commercial Finance Partners, we tailor unitranche solutions to your unique credit profile and strategic objectives. We evaluate your growth trajectory, capital requirements, and potential risks to establish straightforward repayment conditions. Because there’s only one set of loan documents, you save time and reduce administrative overhead. This cohesive financing framework not only streamlines debt management but also positions your organization for larger or more rapid-scale ventures, free of the usual multi-lender complexities.
Single Facility
Eliminate multiple loan tiers, reducing complexity and legal fees.
Faster Closings
Negotiate once, expedite funding, and launch your project sooner.
Predictable Repayments
Manage one blended rate instead of juggling variable debt costs.
Scalability
Increase facility size as your enterprise flourishes, minimizing new negotiations.
Unitranche Lending Business Case Studies
How Unitranche Lending Streamlined a Manufacturing Acquisition
Combined financing for rapid deal closure:
- Lowered negotiation hurdles
- Condensed legal documentation
- Unified repayment schedule
- Freed management capacity
- Boosted synergy realization
How Unitranche Lending Funded a Hotel Chain Expansion
Secured major capital under one rate:
- Enabled swift property acquisitions
- Reduced multi-lender conflicts
- Encouraged brand consistency
- Simplified monthly budImproved cash flow predictabilitygeting
- Maintained operational momentum
How Unitranche Lending Strengthened a Healthcare Merger
Simplified complex financing into one loan:
- Reduced overhead complexities
- Unified stakeholder interests
- Accelerated synergy timeline
- Enhanced merger integration
- Increased post-merger stability
The importance of
Unitranche Lending
Why Choose Commercial Finance Partners:
✦
We customize lending frameworks to your unique acquisition or expansion goals.✦
We consolidate disparate loan layers into simplified, blended-rate facilities.✦
We reduce administrative burdens, accelerating path-to-funding timelines.✦
We monitor market conditions, recommending timely refinements to preserve capital.✦
We stay focused on sustainable debt usage that nurtures corporate resilience.Unitranche Loan Terms at a Glance
A unitranche loan has a single interest rate and a term that is often five to seven years. Lenders frequently split it behind the scenes into first-lien and second-lien pieces governed by an agreement among lenders, but you sign one credit agreement with a single set of terms. Typical terms:
- Borrowers: middle-market companies with annual EBITDA under $50 million and sales under $500 million.
- Size: sizes vary; a typical unitranche loan runs about $100 million to $200 million.
- Leverage: unitranche often lets borrowers secure more leverage.
- Pricing: one blended rate — lower on the portion repaid first, higher on the last-out portion.
- Amortization: fixed and low, often 1% a year, sometimes with a cash flow recapture that applies a share of free cash flow to principal at fiscal year-end.
- Speed: deals are typically done faster, with a single approval process and one set of financial and operational reports.
- Trade-off: potentially higher interest cost than some traditional financing structures.
Source: Regions Bank.
Unitranche vs. Senior Debt Plus Mezzanine
A traditional structure means multiple loans, separate rates and multiple lender groups. A unitranche replaces them with one loan, a single blended rate and a single lender relationship. Compare mezzanine financing and junior capital, see how layers come together in structured finance, or explore our full debt capital advisory services.
Unitranche Lending FAQs
What is a unitranche loan?
A unitranche loan combines senior and subordinated debt into a single loan with one interest rate, one set of terms and one lender relationship. Lenders often divide it behind the scenes into first-lien and second-lien pieces under an agreement among lenders, but the borrower signs one credit agreement. The term is often five to seven years.
What is unitranche debt used for?
Unitranche loans often fund leveraged buyouts and recapitalizations, including private equity–backed acquisitions and management-led buyouts. They may also finance acquisitions and dividend recapitalizations, and more borrowers now use them for growth capital even without a private equity sponsor. They are typically attractive to middle-market borrowers with annual EBITDA under $50 million.
How is a unitranche loan priced?
A unitranche carries one blended rate: the portion repaid first is priced lower, the last-out portion higher, and the borrower sees the blended cost. A potential trade-off is higher interest cost than some traditional financing structures.
Why choose unitranche over senior and mezzanine debt?
A senior-plus-mezzanine structure means multiple loans, separate rates and multiple lender groups; a unitranche is one loan with a single blended rate and a single lender relationship. Unitranche deals are typically done faster, amortization is often fixed at a low 1% a year, and borrowers often secure more leverage.
The financing solutions provided by Commercial Finance Partners were exactly what I needed. Their team was professional and helped me every step of the way
Matthew Rodriguez Business Owner