Structured Credit Solutions

Sophisticated Capital Structures for Complex Situations

TULA Capital architects mezzanine, unitranche, and subordinated debt solutions from $10M-$200M, combining deep structuring expertise, relationships across 80+ specialty lenders, and proprietary market intelligence to deliver flexible capital for growth, acquisitions, and transitions.

$1.8B+
Structured Transactions
80+
Specialty Lenders
45-60
Days to Close
92%
Successful Closings

Why TULA for Structured Credit?

Structured credit requires more than capital—it demands deep expertise in intercreditor dynamics, covenant negotiation, and complex waterfall structures. TULA combines technical mastery with unparalleled market access.

Structuring Excellence

Our team has structured $1.8B+ in mezzanine, unitranche, and subordinated financings. We navigate intercreditor agreements, payment waterfalls, PIK toggles, and equity kickers with precision—optimizing capital efficiency while protecting downside.

  • Complex waterfall modeling
  • Intercreditor negotiation expertise
  • Optimal covenant architecture

Specialty Lender Network

We maintain relationships with 80+ structured credit providers—BDCs, private credit funds, family offices, and specialty finance companies. Our deal flow and execution track record give TULA clients priority access and competitive terms.

  • BDC and private credit fund access
  • Direct relationships with decision-makers
  • Off-market deal flow opportunities

Market Intelligence Platform

Our proprietary database tracks structured credit pricing, covenant terms, and lender appetite across 300+ transactions. We know current market clearing prices, identify mispriced opportunities, and negotiate from positions of data-driven strength.

  • Real-time pricing benchmarks
  • Covenant term comparisons
  • Lender appetite scoring

Our Process

Structured credit transactions require meticulous coordination across senior lenders, equity sponsors, and management. Our process maximizes efficiency while ensuring optimal terms.

1

Capital Structure Design (3-5 days)

We analyze your capital needs, growth plans, and existing obligations to design optimal structures. Our modeling determines ideal mix of senior debt, mezzanine, and equity—balancing cost of capital against flexibility and control.

Output: Capital structure recommendations, return/dilution analysis, lender targeting strategy

2

Market Positioning (5-7 days)

We craft compelling investment narratives emphasizing growth trajectory, defensible market position, and management quality. Materials include detailed financial models, industry analysis, and clear use-of-proceeds justification.

Output: Confidential information memorandum, financial projections, management presentation

3

Targeted Lender Outreach (3-4 weeks)

We simultaneously engage 6-8 best-fit lenders based on size, industry focus, and structural flexibility. Our reputation accelerates processes—most structured lenders provide IOIs within 10-14 days vs. industry standard 3-4 weeks.

Output: 3-5 term sheets with detailed economic and covenant comparison

4

Term Negotiation & Selection (1-2 weeks)

We leverage competition to optimize all dimensions: pricing, PIK options, prepayment flexibility, covenant packages, and equity features. Our database of 300+ structured deals informs every negotiation point.

Output: Executed term sheet with optimized economics and partnership alignment

5

Due Diligence Coordination (3-4 weeks)

We manage legal, financial, and business diligence, coordinating across senior lenders, mezzanine providers, and equity sponsors. Our experience prevents typical intercreditor conflicts and closing delays.

Output: Completed diligence, negotiated intercreditor agreement, closing-ready documentation

6

Closing & Relationship Management

We coordinate documentation, manage funding mechanics, and remain engaged post-close for amendments, refinancings, and additional capital raises. Many clients return for subsequent transactions as their businesses scale.

Output: Funded facility, ongoing advisory support for lender relationship management

Our Structured Credit Solutions

TULA arranges diverse structured credit products tailored to specific capital needs and risk profiles.

Mezzanine Financing

Subordinated debt with equity features, typically 9-15% cash + 3-8% PIK plus warrants. Ideal for acquisitions, recapitalizations, and growth capital where senior debt alone is insufficient.

Typical Size: $10M-$75M
Return Profile: 12-18% IRR
Common Use: LBO financing, dividend recaps

Unitranche Debt

Single-lender solution combining senior and subordinated debt, simplifying documentation and intercreditor dynamics. Faster execution with covenant flexibility for sponsor-backed transactions.

Typical Size: $15M-$100M
Pricing: L+550-750bps all-in
Common Use: PE-backed acquisitions

Subordinated Debt

Junior capital sitting behind senior facility, often with lighter covenants and no amortization. Provides leverage without immediate cash drain, preserving liquidity for operations and growth.

Typical Size: $5M-$50M
Return Profile: 10-14% cash yield
Common Use: Growth capital, bolt-on M&A

Hybrid Structures

Creative combinations of debt and equity-linked securities including convertible notes, preferred equity, revenue participations, and profit interests. Optimized for unique situations.

Typical Size: $10M-$200M
Flexibility: Highly customizable
Common Use: Complex recaps, distressed

Recent Transactions

Representative structured credit transactions closed by TULA Capital.

$85M
Healthcare Platform Acquisition

Unitranche facility for PE-backed acquisition. Structured covenant-lite terms with accordion feature for bolt-on M&A. Priced at L+625bps, saving 100bps vs. traditional senior/sub structure.

Closed in 52 days
$35M
Mezzanine for Software Recap

Subordinated debt supporting shareholder liquidity and growth investment. 11% cash + 4% PIK + 8% equity warrant coverage. Minimal covenants allowing continued aggressive growth.

Closed in 48 days
$150M
Senior/Sub for Industrial Carve-Out

$100M senior + $50M subordinated structure for corporate carve-out. Coordinated intercreditor agreement, transition services, and separation mechanics. Complex structuring completed on accelerated timeline.

Closed in 67 days

Ready to Structure Your Next Transaction?

Our structured credit team is ready to evaluate your opportunity. We'll provide preliminary structure recommendations and lender options within 72 hours—completely confidential.

Common Questions

When does structured credit make sense vs. pure equity?

Structured credit is optimal when you want leverage without full equity dilution, need capital but aren't ready for institutional equity, or require flexible terms traditional banks won't offer. It typically costs 12-18% all-in vs. 20-30%+ equity cost of capital while preserving more ownership and control.

How do intercreditor agreements work?

Intercreditor agreements govern relationships between senior and junior lenders—defining payment priorities, enforcement rights, and amendment procedures. TULA negotiates balanced terms protecting your flexibility while satisfying all lenders. Our experience prevents the conflicts that often delay or kill structured transactions.

What's the difference between mezzanine and unitranche?

Mezzanine sits behind separate senior facility requiring two lenders and an intercreditor agreement. Unitranche combines both in single facility with one lender, simplifying documentation and execution. Unitranche is typically faster but may cost 50-100bps more. TULA models both structures to determine optimal approach for your situation.

How does TULA's compensation work?

We're paid success fees by lenders upon closing—you never write TULA a check. Our compensation is percentage-based on facility size, perfectly aligning our incentives with yours. We only succeed when you close optimal financing on favorable terms.

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