Benefits of Mezzanine Financing

Aegis Capital Corp pic

Aegis Capital Corp
Image: aegiscapcorp.com

For more than three decades, Aegis Capital Corp. has provided investment banking services for clients in the mid-market space. Aegis Capital Corp. regularly assists clients with broad based private debt and equity financing as well as mezzanine financing.

Mezzanine financing refers to the segment of a company’s capital situated between common equity and senior debt. Typically appearing in the form of preferred equity or subordinated debt, mezzanine financing provides a number of benefits for companies.

For companies with relatively little in the way of collateral, mezzanine financing provides a means of securing funding for growth. Borrowers can also use mezzanine financing to diversify an owner’s holdings, often in response to reinvestment of personal dividends back into the business.

On the lender side, mezzanine capital arrangements often include provisions for a warrant, which enables investors to convert their holdings to common stock if the company begins performing well. Mezzanine debt also features higher yields than more senior debt or secured debt. Because mezzanine financing is usually subordinate to senior debt, however, the risk of default on mezzanine capital is also elevated.

Brexit Poses Major Economic Challenges for UK and Eurozone

Brexit

Brexit
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Aegis Capital Corp. is a New York-based financial services firm that provides a host of institutional and family office clients with dedicated investment support. Capabilities range from retail sales to global equity syndicates, with transactions underpinned by RBC Correspondent Services’ multiple execution platforms. The Aegis Capital Corp. team maintains a strong focus on current market conditions and the macro-level events that influence them.

One such notable event in Europe was a popular referendum vote in June 2106 by UK citizens in favor of “Brexit,” or a departure from the European Union. A shock to the financial system, the vote had a tumultuous impact on major markets, with stock markets roiling. In a flight to safety, the pound fell to decade lows, while the Japanese yen and US Treasury notes gained strength.

Despite these immediate effects, economists predict that the most profound impact will be felt further down the road, as the UK unwinds its complex membership in an organization that encompasses all aspects of trade and worker flow among EU member countries. In particular, the UK, which relies on financial services for much of its trade surplus, will have a more difficult time providing essential banking services to clients across the continent. At the same time, the Eurozone will face large-scale structural challenges that may put the continued existence of the EU in question.

Aegis Capital Corp. Launches New Fixed Income Municipal Bond Division

Aegis Capital Corp pic

Aegis Capital Corp
Image: aegiscapcorp.com

Established more than three decades ago, Aegis Capital Corp. offers a host of retail and institutional broker-dealer solutions. In June 2016, the firm announced the creation of a dedicated Fixed Income Municipal Bond Division. The new Aegis Capital Corp. division has been created with a team that was previously with Hapoalim Securities, where its members achieved significant success with a blue-chip client base.

The new addition to Aegis’ Institutional Desk is guided by Anthony J. Lauriello, who directed Hapoalim’s Municipal Institutional Sales and Trading division for five years and who has two decades of experience with Oppenheimer/CIBC.

The team maintains coverage that extends to many of the nation’s leading insurance providers, fixed-income money managers, and mutual funds; a core focus is on tax-exempt securities spanning major Midwest issuers and Northeast region and California credits. Another area of activity is in zero coupon bonds, which do not pay interest and are traded at a significant discount on their full value at maturity.