Capital Stack Gap Financing: Close Debt & Equity Shortfalls Fast
Gap Financing
- * Appraisal or DSCR trims senior proceeds
- * Seller timeline beats lender pacing
- * Equity is spread across other assets
- * Structure sized to the shortfall, not the wish list
- * Terms that sit cleanly above or beside senior debt
- * Dated path to close and takeout
- * Acquisition or refinance closes
- * Senior lender comfort is preserved
- * Clear exit via refi, sale, or cash flow sweeps
Deliverables
Stack map with sources and uses, intercreditor terms, and a dated closing checklist.
Comparable pricing, covenants, and structures from gap-friendly lenders and investors.
Term sheet to funding with conditions tracked to resolution.
Capital Options
- * Dividend with catch-up and clear exit
- * Governance limited to key controls
- * Second lien or pledge with intercreditor
- * PIK and cash-pay structures available
Bridge to refinance or sale where a near-dated event removes the shortfall.
Indicative Terms
USD 1 to 50 million. Tenor 6 to 36 months tied to exit timing.
Market driven. Spread reflects leverage, cash flow, and collateral. Upfront fees agreed at mandate.
Intercreditor or shareholder terms set to protect senior debt and define waterfalls.
What We Need To Engage
- * PSA or refi summary and timeline
- * Sources and uses with gap amount
- * Historicals, pro forma, and model
- * Senior term sheet or underwriting guide
- * Track record and cash equity
- * Org chart and KYC package
Process To Close
Confirm stack, intercreditor needs, and exit. Set a dated plan to closing.
Run the file to matched lenders and investors. Compare pricing, covenants, and timing.
Negotiate terms, intercreditor or shareholder controls, and closing deliverables.
Release funds and monitor until takeout is completed.
FAQ
Either as preferred equity beside common or as mezzanine debt below senior. The choice depends on lender comfort and leverage.
What is the exitRefinance, sale, or cash flow sweeps that reduce the balance on a set schedule.
Yes. Commercial Real Estate, operating businesses, and roll ups where cash flows support the exit.
How fast can we closeTiming depends on data quality and third parties. A complete file shortens diligence and document cycles.
Request Gap Financing Terms
Send your sources and uses, shortfall amount, senior term sheet, and closing date. We will respond with a structure and a dated plan to close.
Start The MandateArranger on a best efforts basis. Eligibility is subject to KYC and AML, diligence, collateral verification, and lender approval. No commitment to lend is expressed or implied.
Get Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
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