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chapter 8 core reading

I

Ivanhoe

Member
It has the benefit of being a privately-held debt instrument with a
restricted and stable syndicate and a strong lead investor.

What does the part highlighted in bold mean?
Also, how does mezzanine finance aid in public-to-private moves as mentioned further?

Page 23

Factors while advancing credit
The analysis becomes more complicated once we allow for the possibility of
repeat orders, particularly if past credit history is itself an indication of
creditworthiness. The problem now becomes one of assessing the value of a new (or retained) client, rather than just the expected profit from an additional sale.


What does the portion highlighted in bold mean?

Could some one please answer?
 
It has the benefit of being a privately-held debt instrument with a
restricted and stable syndicate and a strong lead investor.

What does the part highlighted in bold mean?


Mezzanine finance is provided by a set (or a single) party who is in it for the long term (like a private equity or venture capital company). So the finance providers are stable (ie not going to panic and dive to wind thw company up at the first sign of a problem) and restricted (small grou - communication is easy).


Also, how does mezzanine finance aid in public-to-private moves as mentioned further?

I dont know any examples of this - sorry. Maybe some big public companies that have been bought by private syndicates have used mezzanine?



Page 23

Factors while advancing credit
The analysis becomes more complicated once we allow for the possibility of
repeat orders, particularly if past credit history is itself an indication of
creditworthiness. The problem now becomes one of assessing the value of a new (or retained) client, rather than just the expected profit from an additional sale.


What does the portion highlighted in bold mean?

Not sure what proprtion you refer to.


Could some one please answer?
 
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