| FOCUS Mezzanine
will invest $2 to $10 million in a portfolio company. These
investments may be funded with a combination of its own capital
and that of its co-investors.
FOCUS Mezzanine’s investment will most
often be in the form of a secured loan (subordinate to an
agreed upon amount of senior debt) which will bear interest
at the rate of 12 to 15 percent per annum plus warrants in
the ownership of the portfolio company plus origination fees
such that the total cost of capital to the portfolio company
equals 25 percent compounded per annum.
FOCUS Mezzanine's out-of-pocket costs incurred
in connection with an investment (legal, due diligence, etc.)
will be reimbursed by the portfolio company.
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