Stages of Social Enterprise Capital

Business Plan Blog

Growth or Expansion Stage: Once they have hit or surpassed financial break-even, the social enterprise may be able to access debt capital and to establish a credit history. Socially motivated lenders may be able to provide flexible or subordinate debt to a social enterprise.

Canada Pushes Embedded Contingent Capital

Recent Buzzes - VC Experts, Inc.

Essentially, OSFI would require all new non-common Tier 1 (perpetual preferred shares) and Tier 2 capital (subordinated debt) to contain features that would convert these instruments into common share equity when the bank is in serious financial trouble, instantly increasing the common share equity capital of the bank without the use of taxpayer money. Similarly, subordinated debt holders would have a two-stage conversion, which would be virtually simultaneous.

Defining Intercreditor and Subordination Terms in Deal Negotiations

Recent Buzzes - VC Experts, Inc.

The overheated debt markets from 2003 to 2007 resulted in a record volume of buyout transactions by financial sponsors. The proliferation of second lien debt provided by hedge funds, private equity funds and other nontraditional investment vehicles like collateralized loan obligations satisfied the demand for leveraged debt created by these acquisitions.

Welcome to SBA Ventures LLC.

Inc Startups

Investments are structured giving equity a senior position, while the SBA portion is structured as subordinated debt that pays a quarterly interest back to the government equivalent to the rate of a 10-year Treasury bill plus 1.5

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Exit Strategy - Selling my first company

Angel Blog

We had a layer of subordinated debt in our capital structure. I started my first company, Nexus Engineering, when I was still a grad student. A little over ten years later, the board decided it was time to sell. The company was the second largest manufacturer of cable TV headends in the world. The number one and number three in our vertical were Fortune 500 companies. Our exit strategy was to sell our company to a Fortune 500 company in the defense business.