Unitranche Loans
One Loan. One Lender. More Flexibility for Your Business.
Flexible financing for acquisitions, growth, refinancing, and recapitalizations.
When traditional bank financing isn’t flexible enough, a unitranche loan can provide the capital your business needs through a streamlined financing structure.
Whether you’re acquiring a business, refinancing existing debt, or investing in your next stage of growth, we help business owners access customized financing designed around their objectives.
Capital Designed Around Your Business
Your financing shouldn’t force your business into a rigid structure.
Unitranche financing combines senior and junior debt into a single facility, giving you one primary financing relationship and a simplified capital structure.
We work with business owners to structure financing around their:
- Growth plans
- Acquisition opportunities
- Cash flow
- Existing debt
- Capital requirements
- Timing and transaction objectives
One facility. One relationship. A financing structure built for your goals.
Financing for Important Business Opportunities
Acquisition Financing
Move quickly when the right acquisition opportunity becomes available.
Unitranche financing can provide capital for acquisitions, management buyouts, add-on acquisitions, and other strategic transactions.
Capture opportunities without unnecessarily complicating your capital structure.
Growth Capital
Invest in your business with financing designed to support expansion.
Whether you’re opening new locations, expanding operations, investing in equipment, or entering new markets, customized debt financing can help fund your growth strategy.
Refinancing
Simplify your existing debt structure.
Refinancing with a unitranche facility may allow you to consolidate existing debt and establish a financing structure aligned with your company’s current needs.
Recapitalizations
Create liquidity while maintaining a flexible capital structure.
Unitranche financing may support ownership transitions, shareholder liquidity, recapitalizations, and other strategic financial objectives.
Why Business Owners Choose Unitranche Financing
One Financing Relationship
Working with a single lender can simplify communication, documentation, reporting, and ongoing administration.
Flexible Structures
Financing can be structured around your company’s cash flow, leverage profile, transaction requirements, and future plans.
Efficient Execution
A streamlined financing process can help you move from initial discussion to closing efficiently when transaction timing matters.
Customized Capital
Rather than relying on a one-size-fits-all lending model, unitranche financing can be tailored to the specific circumstances of your business.
Unitranche funding is the best solution for a cash flow-based deal that needs both a senior and subordinated component. Unitranche funding offers both senior and subordinated layers in one integrated loan from one loan provider. Unitranche is provided by a number of different types of lenders including private debt funds, public business development corporations, independent mezzanine funds and alternative finance companies. Unitranche is ideal for companies with the following criteria:
- Loan need of > $15 million.
- Combined company has light assets but strong EBITDA.
- EBITDA > $5 million.
- Combined history of stable financial performance.
- Total debt to EBITDA multiple of less than 4x.
A Straightforward Financing Process
1. Tell Us About Your Business
Share your financing objectives, capital requirements, transaction details, and timeline.
2. Evaluate Your Options
We review your business and determine whether unitranche financing is an appropriate solution.
3. Structure the Financing
We develop financing terms designed around the transaction and your company’s requirements.
4. Close With Confidence
Once diligence and documentation are complete, financing is finalized and capital is provided according to the agreed terms.
Is Unitranche Financing Right for Your Business?
Unitranche financing may be a strong option if you’re:
- Acquiring another company
- Refinancing existing debt
- Pursuing an ownership transition
- Expanding your business
- Funding an add-on acquisition
- Seeking shareholder liquidity
- Looking for a more flexible alternative to traditional bank financing
If you’re evaluating a significant financing decision, we can help you understand your options.
Ready to Put Capital Behind Your Next Move?
Frequently Asked Questions
What is a unitranche loan?
A unitranche loan combines different layers of debt into a single financing facility. For the borrower, this generally means one loan, one set of financing documents, and one primary lender relationship.
What can a unitranche loan be used for?
Depending on the lender and transaction, unitranche financing may be used for acquisitions, growth capital, refinancing, recapitalizations, management buyouts, and other business financing needs.
Who typically uses unitranche financing?
Unitranche financing is commonly used by established businesses, middle-market companies, and private-equity-backed businesses seeking flexible financing for acquisitions, growth, refinancing, or other strategic transactions.
Is unitranche financing more flexible than a traditional bank loan?
It can be. Unitranche lenders may offer greater flexibility in structuring leverage, repayment terms, acquisition provisions, and other financing terms. The actual flexibility depends on the lender, borrower, and transaction.
How much can I borrow?
Financing capacity depends on factors such as revenue, cash flow, leverage, industry, collateral, existing debt, transaction structure, and the lender’s underwriting criteria.
How quickly can financing close?
Timing varies by transaction. A lender will typically consider the complexity of the transaction, financial and legal diligence, documentation, and other closing requirements.
Let’s Talk About Your Financing Needs
Have a transaction in mind?
Tell us what you’re looking to accomplish, and our team can help you explore potential financing options.
