First Business Bank - Milwaukee Introduces Mezzanine Funding
25 April 2007 - 8:12PM
PR Newswire (US)
Financing fills void for companies under $8 million MILWAUKEE,
April 25 /PRNewswire/ -- First Business Bank is now offering
mezzanine funding to Milwaukee-area clients through an investment
with Aldine Capital Fund, L.P. (in Wisconsin and Illinois) to
provide funding between $2 million and $8 million in investment
size. Mezzanine financing, also referred to as "mezzanine capital"
or "junior capital," allows borrowers to obtain unsecured debt
financing based on cash flow rather than traditional collateral. It
is a tool that can fill the financing gap that often occurs between
owners' equity and traditional bank financing, where the maximum
bank loan might be capped by collateral requirements or other
limitations. Mezzanine financing is most often used for financing
growth, re-capitalization, acquisitions or ownership changes.
Nationally, large corporate banking and investment conglomerates
offer mezzanine funding but tend to target investment sizes of
greater than $10 million for a single company. "Most companies that
offer mezzanine financing tend to focus on larger deals, which
leaves a void, especially in Wisconsin, for mezzanine funding under
$5 million," says Dave Vetta, President & CEO, First Business
Bank - Milwaukee. "We frequently serve industries where growth and
acquisitions create a need for additional funding sources," he
adds. "Mezzanine financing is a win- win-win scenario for
borrowers, lenders and investors. By offering a funding solution
for small- to medium-sized businesses, we feel we are bringing
something of great value to the local business community.
Furthermore, we believe we are the only Wisconsin-based bank to
offer this financing alternative." Mezzanine funding strengthens a
company's balance sheet by adding needed capital while the provider
focuses on existing cash flow in the overall repayment analysis.
Some common characteristics of companies funded with mezzanine
capital include those with excellent performance histories,
experienced management teams, an industry niche and a history of
strong customer relationships. Key advantages of mezzanine
financing include reduced ownership dilution (as compared to other
forms of equity financing) and the opportunity for the business
owner to repay the debt and purchase any equity from the mezzanine
lender at a pre-arranged time and price. Each mezzanine deal will
be negotiated on an individual basis and could fund investments for
projects ranging from the development of technology to business
succession. "We saw a need in this market to expand financing
options but we wanted to ensure direct access to decision-makers
and the fast turnaround we guarantee in our traditional lending
services," adds Vetta. Mezzanine funds are currently available. For
further information on mezzanine funding, please contact Dave
Vetta, President & CEO, First Business Bank - Milwaukee, at
262-792-7100. To set up an interview with a First Business Bank
management team member, please contact Jodie Johnson at or
262-792-1400. About First Business Bank - Milwaukee First Business
Bank - Milwaukee was established in 2000 to provide a full range of
commercial banking services to Greater Milwaukee-area businesses
and business people. We are chartered as a unit bank with a CEO and
a board of directors. This structure allows us to understand local
businesses and respond quickly and proactively to meet their needs.
For additional information, visit http://www.fbbmilwaukee.com/ or
call 262-792-1400. About First Business Financial Services, Inc.
First Business Financial Services (NASDAQ:FBIZ) is the parent of
the First Business family of companies, managing shareholder
relations and providing access to capital for our operating
entities. Its companies include: First Business Bank - Madison, and
First Business Bank - Milwaukee (individually chartered banks, not
branches), First Business Trust & Investments, First Business
Leasing, LLC, and First Business Capital Corp. For additional
information, visit http://www.fbfinancial.com/ or call
608-238-8008. DATASOURCE: First Business Bank - Milwaukee CONTACT:
Jodie Johnson, Marketing & Communications Officer of First
Business Financial Services, Inc., +1-262-792-1400, Web site:
http://www.fbbmilwaukee.com/ http://www.fbfinancial.com/
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