to address potential purchase price deficits when priority facilities and equity participation (and any other financing) are combined, and to gain access to certain types of lenders who prefer to invest in mezzanine, which represents a higher risk and return than priority debt The Mezzanine Facility is a form of financing classified according to priority facilities. It is sometimes used for leveraged financing operations: the Mezzanine facility is documented by a Mezzanine Facility Agreement (MFA). While there are usually some important differences between the conditions of the senior, this practice note covers the typical features of the mezzanine facility and details the main changes needed to turn a senior facility agreement into a mezzanine-facility agreement. An introductory guide to acquisition and leverage finance can be found in the practice note: Acquisition Financing – Introductory Guide and Explanation of Frequently Used Specialized Jargon at: Glossary of Acquisition Finance Terms and Jargon. Any notification of an advance or cancellation made by a party in accordance with this clause 10 or an agreement relating to the priority facility shall be irrevocable and, unless otherwise specified in a financial document, the corresponding cancellation or deposit date(s) shall be indicated, together with the amount of such cancellation or its advance payment. The roles of the designated official and the person responsible for money launderingA designated official is a person: who is appointed by a company to obtain information in accordance with Part 7 of the Proceeds of Crime Act 2002 (POCA 2002) or Part Iii of the Terrorism Act 2000 (TA 2000) – see the requirement to appoint an agreement, except as expressly provided in this clause 10 or in an agreement on priority bodies; Each deposit is made at the same time as the interest accrued on the prepaid amount, without penalty, with the exception of the interruption costs resulting from such a deposit or provided for by the agreement in force on the priority organization. The General Terms and Conditions of Sale (SCS), currently in their 5th edition (2018 revision), are a series of standard conditions that are generally included in housing sale contracts. Standard commercial property conditions (third edition – Revision 2018) (SCPC) are used for mezzanine and are usually provided by institutional investors such as funds that invest in leveraged loans, pension funds, hedge funds and specialized mezzanine houses. For introductory information on funding sources for leveraged finance transactions and how Mezzanine fits into the capital structure, see Practice Note: Sources of finance for leveraged buy-outs. .

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