Mezzanine & Subordinated Debt
Growth and transition capital built for operators. Secure the financing you need to expand, acquire, or transition ownership—without giving up a single share of your company.
Capital Based on Cash Flow, Not Just Hard Assets.
Traditional Canadian banks lend looking in the rearview mirror, requiring strict asset collateral like real estate or heavy equipment to secure a loan. But what happens when you are growing rapidly, buying out a partner, or acquiring a competitor, and you lack the tangible assets to pledge for senior debt? AJS Capital provides customized Subordinated Debt. We sit patiently behind your primary bank, underwriting the historical cash flow of your business and the strength of your management team. You get the capital to execute your vision; you keep 100% of the control.
How Operators Use Subordinated Debt
Ownership Transition & Buyouts
The Scenario: A founding partner is ready to retire, or a management team wants to buy out the current owner (MBO).
The Solution: We provide the transition capital to facilitate a clean exit for the retiring shareholder while allowing the remaining operators to take full control without draining their personal liquidity.
Strategic Acquisitions
The Scenario: You have the opportunity to buy a competitor or a key supplier, but the bank won't fund the "goodwill" portion of the purchase price.
The Solution: Mezzanine debt acts as the perfect bridge between your senior bank loan, the seller's VTB, and your cash injection, ensuring the deal crosses the finish line.
High-Growth Expansion
The Scenario: You just won a transformational commercial contract or need to expand into a new facility, but the upfront working capital requirement exceeds your current bank line.
The Solution: We inject patient growth capital to fund the execution phase, ensuring you never have to walk away from profitable revenue.
Flexible Terms Designed to Protect Your Working Capital
When a business is growing or transitioning, cash is oxygen. Our subordinated debt facilities are structured to ensure your daily operations are never starved for cash.
Patient Repayment Structures: We customize repayment to match your actual cash inflows. This can include interest-only periods (e.g., postponing principal payments for the first 12 months), cash flow sweeps, or balloon payments at maturity.
Subordinated Security: We take a secondary position behind your senior lender. This gives you maximum borrowing power and preserves your relationship with your primary bank.
Zero Equity Dilution: Unlike traditional private equity, we do not take warrants, board seats, or ownership stakes. We are a lender, not your boss. You retain 100% of your equity and operational control.
Watch How Mezzanine Debt Bridges the Bank Gap
Who We Partner With
Target Facility Size: $100,000 to $1,000,000
Company Profile: Established Western Canadian operators in B2Bm Trades, Manufacturing, and Wholesale/Distribution.
Financial Health: $1M to $10M in annual revenue with a consistent, proven track record of positive EBITDA and strong historical cash flow.
Management: A highly capable, dedicated management team staying in place post-transaction. Second lien / Subordinated position.
Ready to structure your transition or growth capital?
Discuss your specific scenario directly with our Deal Desk. All inquiries are strictly confidential.