Access to additional capital without diluting equity.
Often come with less onerous financial covenants.
Ideal for specific, higher-margin projects or acquisitions.
Increase acquisition capacity.
Enter new markets or asset classes.
Provides additional liquidity for day-to-day operations.
Payment-In-Kind (PIK) options are becoming increasingly popular.
Combination of senior and junior elements to optimize the cost of capital.
Junior credit as part of Special Purpose Acquisition Company (SPAC) strategies.
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