Integrate Multiple Capital Layers for Larger Ventures
Structured Finance
Structured Finance weaves together diverse funding instruments—like senior loans, mezzanine debt, or asset-based solutions—under one cohesive package. This holistic approach provides expansive borrowing capacity without requiring numerous standalone negotiations.
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Structured Finance Services
Structured Finance addresses capital needs too intricate for plain-vanilla loans, particularly in large-scale transactions such as leveraged buyouts, cross-border expansions, or major recapitalizations. By blending multiple forms of debt, equity options, and sometimes securitization tools, you align each slice of capital with its own risk/reward profile. The end result is a single, unified facility that accommodates complex or sizable initiatives.
At Commercial Finance Partners, our role is to develop that unifying structure in a way that satisfies all stakeholders—senior lenders, junior investors, mezzanine participants, and your executive team. We balance interest rates, repayment terms, and potential equity kickers to ensure your organization remains stable. Whether you’re merging with an international firm or scaling an existing operation significantly, Structured Finance adds the flexibility to manage shifting timelines and market pressures. Freed from juggling multiple, conflicting loans, you can focus on strategic execution and synergy-building.
Layered Capital
Combine different debt tiers for comprehensive funding.
Scalable Deals
Tackle larger projects without separate negotiations for each loan type.
Risk Distribution
Allocate financial exposure across various investor classes.
Customizable Terms
Tailor each capital layer to unique operational milestones.
Structured Finance Business Case Studies
How Structured Finance Powered a Multinational Merger
Unified senior, mezzanine, and cross-border facilities:
- Balanced currency exposures
- Integrated disparate operations
- Secured investor consensus
- Maintained brand identity
- Drove global market entry
How Structured Finance Drove a Large-Scale Recapitalization
Reconfigured debt and equity for growth:
- Lowered overall borrowing costs
- Shifted ownership balance
- Protected existing investors
- Freed capital for R&D
- Streamlined governance
How Structured Finance Funded a Mixed-Use Real Estate Project
Merged ABL, mezzanine, and equity slices:
- Covered construction phases
- Mitigated tenant onboarding risks
- Phased in occupancy revenue
- Attracted stable anchor tenants
- Anchored local development
The importance of
Structured Finance
Why Choose Commercial Finance Partners:
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We shape complex deals that sync with your corporate blueprint.✦
We defuse multi-lender friction by unifying separate loan processes.✦
We stretch total borrowing capacity while balancing risk exposures.✦
We anticipate synergy timelines to align capital with execution phases.✦
We provide continuous guidance, adapting structured solutions as new demands arise.Building a Structured Finance Capital Stack
A capital stack is a priority schedule: when a borrower runs into trouble, it answers who gets paid first and who is left with what remains. Many middle-market companies rely on a combination of senior asset-based facilities and subordinated capital to fund operations, acquisitions or liquidity needs. Common layers:
- Senior asset-based debt: an ABL revolver and term loans can be part of a large, structured transaction that combines ABL with other secured or unsecured debt — see asset-based loans.
- First-out and last-out tranches: two tranches that share a senior lien but have different repayment priorities; the last-out tranche allows a higher overall advance rate at a higher interest rate.
- Second-lien loans: subordinate in repayment, without a share of the senior lien, and governed by an intercreditor agreement — a common form of junior capital.
- Mezzanine debt: subordinated, often unsecured or lightly secured capital priced between senior debt and equity; all-in pricing for acquisition financing typically runs 10% to 14% in 2026.
- Unitranche: senior and subordinated debt combined in a single loan with one interest rate, one set of terms and one lender relationship.
Sources: OCC Comptroller’s Handbook, “Asset-Based Lending”; ABF Journal.
The Intercreditor Agreement and the Cost of Each Layer
The intercreditor agreement makes the capital stack real: it defines what each lender can and cannot do when a borrower encounters difficulty, including payment subordination, standstill periods of typically 30 to 180 days after a default, and the junior lender’s right to cure senior defaults. Each layer is priced for where it sits: over long-run data going back to 1987, first-lien senior secured loans have recovered approximately 70 to 80 cents on the dollar in default, while second-lien loans have recovered roughly 30 to 45 cents. Explore all of our debt capital advisory services.
Structured Finance FAQs
What is structured finance for a middle-market company?
Structured finance, as Commercial Finance Partners uses the term, weaves together funding instruments such as senior loans, mezzanine debt and asset-based financing into one cohesive package. Each layer has its own repayment priority, and an intercreditor agreement defines what each lender can and cannot do if the borrower encounters difficulty.
What is a capital stack?
A capital stack is the priority schedule of a company’s financing. It answers a single question when a borrower runs into trouble: who gets paid first, and who is left with what remains. Senior secured debt sits at the top, followed by second-lien and subordinated debt such as mezzanine, with equity at the bottom.
What does an intercreditor agreement cover?
An intercreditor agreement sets the rules between senior and subordinated lenders. Key provisions include payment subordination, which bars the junior lender from accepting payments until the senior loan is repaid in full; standstill periods, typically 30 to 180 days, during which the mezzanine lender cannot enforce after a default; and the junior lender’s right to cure senior defaults.
How does asset-based lending fit into structured finance?
An asset-based revolver and term loans can be part of a large, structured transaction that combines ABL with other secured or unsecured debt. An ABL facility can also be split into first-out and last-out tranches, or paired with a second-lien loan to provide additional leverage, with an intercreditor agreement governing the lenders’ rights.
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