Huntington Bancshares, an Ohio-based bank holding company, has re-launched mezzanine finance program as part its focus on offering non-traditional financial solutions for corporate and institutional customers.
Huntington’s mezzanine finance program is expected to provide funding to established, medium-sized companies.
Steve Steinour, CEO of Huntington, said: “Mezzanine financing is an important solution for a number of our clients. Re-introducing it is part of our continued commitment to making financing available to growing businesses that are also creating new jobs.”
Randy Stickler, senior executive vice president at Huntington, said: “Our typical customer is a company seeking a loan of $1 to $10m. This gives Huntington customers an advantage, as most of our competitors focus on larger transactions.”
“When a mezzanine transaction is combined with senior financing, the customer gets significant flexibility in terms of structure, negotiation and reporting.”
Typically, a company seeks mezzanine financing for rapid internal expansion, external acquisition opportunities, debt restructuring, succession planning, and/or management or leveraged buyouts. Mezzanine loans have terms of three to five years, and are subordinate to senior financing.