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.
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.
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.
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.
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.
Structured credit transactions require meticulous coordination across senior lenders, equity sponsors, and management. Our process maximizes efficiency while ensuring optimal terms.
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
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
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
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
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
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
TULA arranges diverse structured credit products tailored to specific capital needs and risk profiles.
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.
Single-lender solution combining senior and subordinated debt, simplifying documentation and intercreditor dynamics. Faster execution with covenant flexibility for sponsor-backed transactions.
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.
Creative combinations of debt and equity-linked securities including convertible notes, preferred equity, revenue participations, and profit interests. Optimized for unique situations.
Representative structured credit transactions closed by TULA Capital.
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.
Subordinated debt supporting shareholder liquidity and growth investment. 11% cash + 4% PIK + 8% equity warrant coverage. Minimal covenants allowing continued aggressive growth.
$100M senior + $50M subordinated structure for corporate carve-out. Coordinated intercreditor agreement, transition services, and separation mechanics. Complex structuring completed on accelerated timeline.
Our structured credit team is ready to evaluate your opportunity. We'll provide preliminary structure recommendations and lender options within 72 hours—completely confidential.
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.
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.
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.
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.
Detailed answers on leveraged finance mechanics, CLO structures, and market terms.
Unitranche combines senior and subordinated debt into a single facility with a blended interest rate and unified documentation. Bifurcated structures maintain separate senior and junior facilities with distinct terms, pricing, and intercreditor arrangements. Unitranche simplifies execution (single negotiation, one set of documents), reduces costs, and accelerates closing timelines—typically 4-6 weeks vs. 8-12 weeks for bifurcated deals. However, bifurcated structures offer more pricing flexibility and clearer risk separation for institutional investors with specific return requirements.
CLOs (collateralized loan obligations) are securitization vehicles that purchase portfolios of leveraged loans and issue tranches of notes backed by loan cash flows. The structure includes waterfall (priority of payments), indentures and collateral management agreements, SPV entities, warehouse facilities for loan accumulation, and regulatory compliance (risk retention, disclosure requirements). We advise on CLO formation, warehouse financing, and ongoing portfolio management across the capital stack.
Second-lien facilities typically price at 600-900 basis points over SOFR (vs. 400-600 for senior), include PIK options during certain periods, and have longer tenors (6-8 years). Mezzanine debt sits below second-lien (or is unsecured), prices at 10-14%, often includes PIK and equity participation through warrants or co-investment rights. Both require subordination agreements governing payment priorities, enforcement restrictions, and standstill periods (typically 180 days for second-lien, 12-24 months for mezzanine).
Covenant-lite facilities eliminate or significantly reduce financial maintenance covenants (leverage ratios, coverage tests), relying instead on incurrence covenants that only restrict specific actions. This provides borrowers operational flexibility but reduces lender control and early warning signals of financial deterioration. Cov-lite has become standard in sponsor-backed transactions and represents 80%+ of new institutional loan volume. Structuring focuses on robust incurrence baskets, strong change-of-control provisions, and careful limitations on asset sales and restricted payments to protect lenders despite reduced covenant protection.
Warehouse facilities provide short-term financing for loan originators to fund loan portfolios before selling them into securitizations or permanent facilities. The warehouse lender advances against eligible loans (typically 75-85% of par), charges SOFR plus 250-400 basis points, and holds first-priority security until loans are sold. Key terms include eligibility criteria, advance rate mechanics, representations and warranties, repurchase obligations for breaching loans, and coordination with ultimate securitization structures. Warehouses typically have 364-day terms with extension options.